President Donald Trump commuted the sentence of Carlos Watson, co-founder of Ozy Media, just before he was set to report to prison for a nearly 10-year sentence in a financial conspiracy case, a White House official confirmed on March 28.
Watson had been convicted last year in a high-profile case that highlighted the downfall of his ambitious startup during a rough period for the media industry. He was supposed to turn himself in on March 28, but now, thanks to the commutation, he won’t have to.
The commutation was confirmed by a senior White House official who spoke anonymously, as they weren’t authorized to publicly discuss the decision. Watson’s lawyer didn’t immediately respond for comment.
Trump has frequently used his power to grant clemency, commuting sentences or issuing pardons for those he believes were unfairly treated by the justice system. This comes as Trump himself faced legal issues, including a conviction related to hush money payments, which he has called part of a politically motivated attack against him.
Watson’s commutation came alongside several other acts of clemency announced by the White House. These included a pardon for Trevor Milton, founder of electric vehicle company Nikola, who had been sentenced to four years for fraud, and pardons for three entrepreneurs tied to the cryptocurrency exchange BITMEX, who had been sentenced to probation after the company was fined for violating U.S. anti-money laundering laws.
Ozy Media, founded in 2012, was designed to offer a fresh, modern take on politics and culture, with a focus on amplifying marginalized voices. But in the fall of 2021, the company shut down after the New York Times raised questions about its inflated viewership claims and potential securities fraud.
Watson was arrested in February 2023 after two of the company’s top executives pleaded guilty to fraud. Prosecutors accused Watson of deceiving investors by inflating revenue figures and making deals appear finalized when they weren’t. At one point, Watson’s co-founder pretended to be a YouTube executive during a call with potential investors, prosecutors said.
After Watson’s conviction, Brooklyn U.S. Attorney Breon Peace said the jury found Watson to be a “con man” who deceived investors into buying stock in his company. “Ozy Media collapsed under the weight of Watson’s dishonest schemes,” Peace said.
But Watson, who is Black, called the case a “modern lynching” and argued he was the target of “selective prosecution.” While he admitted to making mistakes and expressed regret, Watson maintained that the punishment was unfair.
U.S. District Judge Eric Komitee, who sentenced Watson, described the level of dishonesty in the case as “exceptional.”
Watson, who holds degrees from Harvard and Stanford Law, had an impressive background that included work on Wall Street, on-air roles at CNN and MSNBC, and previous entrepreneurial success. Ozy Media, his second startup, came a decade after he sold a test prep company he founded in his 20s.
Based in Mountain View, California, Ozy Media produced TV shows, podcasts, newsletters, and even a music-and-ideas festival. Watson himself hosted several TV programs, including “Black Women OWN the Conversation,” which aired on the Oprah Winfrey Network.
Ozy attracted major advertisers, clients, and grants, but behind the scenes, it was struggling. Insiders testified that the company began to falter after 2017, with problems paying bills and taking out expensive loans to stay afloat. At the same time, the company exaggerated its revenue numbers to potential investors, a tactic that ultimately led to Watson’s legal troubles.
