President Trump on Friday commuted the prison sentence of Carlos Watson, the founder of the now-defunct digital media startup Ozy Media, a spokesperson for Watson confirmed to Axios.
Why it matters: Watson was found guilty of conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft last year after a judge concluded that he had illegally deceived investors about his company’s financials.
Zoom in: Watson learned that he was granted clemency while on a flight on his way to serve his nearly 10-year prison sentence, according to his spokesperson, Juda Engelmayer.
- The president also commuted the sentence of probation imposed on Ozy Media for its conviction in the case, according to CNBC. Engelmayer could not confirm that detail.
- A federal judge last month ordered Watson and Ozy to pay over $36 million in restitution and nearly $60 million in forfeiture.
- Watson’s attorney Arthur Aidala did not immediately reply to a request for comment.
Glenn Martin, a criminal justice reform advocate, celebrated the news on X and thanked the president, his daughter Ivanka Trump, and fellow criminal justice reform advocate Dr. Topeka K. Sam, among others, for helping to make Watson’s commutation possible.
- He also thanked Alice Marie Johnson, who was famously granted clemency by President Trump after 21 years in prison in 2018. Johnson’s clemency was made possible by the public support of Kim Kardashian.
Catch up quick: Watson was found guilty of being involved in a scheme to impersonate a YouTube executive to vouch for Ozy’s video metrics on a fundraising call with Goldman Sachs.
- The move, initially reported by the New York Times in late 2021, led to an FBI investigation and eventually a trial in which Watson was found guilty of defrauding investors.
- Watson had pleaded not guilty in court. He tried to argue that Ozy’s growth efforts were no different from other media companies looking to scale fast. He blamed his colleagues for the impersonation scandal.
- Ex-Ozy Media executives cooperated with prosecutors, which hurt Watson’s attempts to deflect blame.
- A federal court judge eventually ruled that Watson was guilty. He faced up to 37 years in prison for the crime. He was ultimately sentenced to 116 months behind bars.
The big picture: Watson’s conviction sent shockwaves through the digital media industry, which for years faced pressure from venture investments to grow quickly online.
Go deeper: How Ozy fell
