Trump Commutes Sentence of Ozy Media Founder Carlos Watson

President Donald Trump granted executive clemency to Carlos Watson, founder of the now-defunct news and entertainment company Ozy Media, just hours before Watson was scheduled to begin serving an 116-month prison sentence. The commutation also removes the one year of probation imposed on Ozy Media for its conviction in the same case.

A Multi-Million Dollar Scheme

Watson's original conviction stemmed from a multi-million dollar scheme that involved falsely claiming Ozy Media had deals with prominent entities like Google and Oprah Winfrey. He was found guilty at trial in Brooklyn federal court last July on charges of conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. In December, Watson was sentenced to 116 months in prison.

In February, a federal judge ordered both Watson and Ozy Media to pay nearly $60 million in forfeiture and over $36 million in restitution. This decision aimed to compensate the victims of Watson's fraudulent activities.

Trump's Action and Its Implications

The commutation granted by President Trump effectively eliminates the criminal penalties imposed on both Watson and Ozy Media. While Watson had been prepared to surrender to the Federal Correctional Institution in Lompoc, California, on Friday afternoon, he received news of the commutation before doing so.

Glenn Martin, a prominent criminal justice reform advocate, celebrated the news on Twitter, stating that "President Trump commuted the sentences of Ozy Media and Carlos Watson hours before his surrender." Martin also expressed gratitude to Alice Marie Johnson, another criminal justice reform advocate who had played a role in securing this outcome.

Prosecutors' Viewpoint

At the time of Watson's sentencing, then-Brooklyn U.S. Attorney Breon Peace condemned his actions, stating that "Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars." Prosecutors alleged that between 2018 and 2021, Watson and his co-conspirators defrauded investors by misrepresenting Ozy's financial performance, business relationships, acquisition prospects, and contract negotiations.

The Downfall of Ozy Media

Ozy Media abruptly shut down in October 2021 following a report by The New York Times that revealed the company's chief operating officer, Samir Rao, had impersonated a YouTube executive during a conference call with Goldman Sachs. At the time, Goldman Sachs was considering a $40 million investment in Ozy.