President Donald Trump commuted the sentence of Carlos Watson, the co-founder of Ozy Media, just hours before Watson was set to begin serving a nearly 10-year term in a financial conspiracy case. Watson had been convicted last year in a high-profile case that highlighted the downfall of a promising startup during a turbulent period in the media industry. He was scheduled to surrender to prison on Friday.
In a statement expressing gratitude to the president, Watson criticized the judge who oversaw his case, labeling them as “conflicted and unethical.” He lauded Trump for rectifying what he called a “grave injustice,” emphasizing the president’s dedication to fairness and justice for those he believes have been unjustly targeted.
Trump has frequently utilized his authority as president to commute sentences and grant pardons to individuals whom he believes were treated unfairly by the legal system. The president himself faced a conviction last year in a case involving hush money payments, which he has characterized as a politically motivated attack.
Watson’s commutation was part of a series of acts of clemency announced by the White House on Friday. Among those granted pardons were Trevor Milton, the founder of electric vehicle company Nikola, who had been convicted of fraud and was sentenced to four years in prison. Additionally, three entrepreneurs involved in the cryptocurrency exchange BITMEX, which had been fined $100 million for violating anti-money laundering laws, were also pardoned after receiving probation sentences.
Ozy Media, founded in 2012 with a focus on providing a fresh perspective on politics, culture, and more, announced its closure in 2021 following allegations of inflated viewership and potential securities fraud. Watson’s arrest came after two company executives pleaded guilty to fraud charges.
Prosecutors accused Watson of deceiving investors and lenders by exaggerating revenue figures and misleading them about the status of business deals. Despite being described as a “con man” by the prosecution, Watson, who is Black, denounced the case as a “modern lynching” and claimed he was a victim of selective prosecution.
Judge Eric Komitee, a Trump appointee, characterized the level of deception in the case as extraordinary during Watson’s sentencing. Despite holding prestigious degrees and having a successful career in finance and media, Watson’s involvement in Ozy Media ultimately ended in legal trouble and a prison sentence that was later commuted by President Trump.
In his 20s, he founded a test-prep company which he later sold. Based in Mountain View, California, Ozy was known for producing TV shows, newsletters, podcasts, and a music-and-ideas festival. The company, led by Watson, secured notable clients and grants, and even won an Emmy for the TV program “Black Women OWN the Conversation” on the Oprah Winfrey Network. However, behind the facade of success, Ozy faced financial struggles post-2017, as revealed by insiders. Former finance vice president Janeen Poutre testified that the company faced challenges meeting payroll, rent deadlines, and resorted to costly cash advances to cover expenses. Ozy also allegedly misrepresented revenue figures to potential investors compared to what was reported to accountants, as indicated by testimonies and documents. Jennifer Peltz from the Associated Press in New York contributed to this report.
