Former TV personality Carlos Watson was convicted on Tuesday in a federal financial conspiracy case centered around Ozy Media, an ambitious startup that ultimately collapsed amid allegations of fraud and deception.

Brooklyn federal prosecutors announced on X that a jury found Watson guilty on all three charges brought against him: conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. These charges stemmed from allegations that Watson conspired to mislead investors and lenders in order to keep Ozy Media financially afloat.

Throughout the trial, Watson maintained his innocence, pleading not guilty and vigorously denying the prosecution's accusations. He argued that the financial challenges Ozy faced were typical of many startups and that disclosures to investors warned them that financial information was unaudited and subject to change.

The defense sought to shift blame onto Ozy's co-founder and chief operating officer, Samir Rao, who had already pleaded guilty. They argued that any misrepresentations were orchestrated by Rao, not Watson.

Carlos Watson, known for his previous roles at CNBC, MSNBC, and CNN, as well as his background in finance and entrepreneurship, founded Ozy Media in 2012. The company gained attention for producing innovative shows, granting "Ozy Genius" awards to college students, and hosting influential figures like former President Bill Clinton. Ozy even won an Emmy Award and organized an annual music and ideas festival attended by then-former Vice President Joe Biden in 2017.

Behind this public success, prosecutors argued, Ozy was struggling financially from as early as 2018. Testimony from former finance Vice President Janeen Poutre revealed that the company frequently faced cash shortages, struggling to pay vendors, rent, and employees. To bridge financial gaps, Ozy took out costly loans based on future earnings and allegedly began fabricating financial data to attract new investors.

According to prosecutors, the discrepancies between the revenue figures presented to investors and those reported internally widened significantly over time, with claimed revenues reaching $53 million versus actual revenues of $11.2 million in 2020.

One of the most damning allegations was that Watson and his team misrepresented deals and partnerships, including falsely claiming that Google was interested in acquiring Ozy for hundreds of millions of dollars. Google CEO Sundar Pichai testified that no such offer was ever made, although he did consider hiring Watson and providing financial support to Ozy if Watson took a job at Google.

The prosecution also highlighted instances where Samir Rao impersonated a YouTube executive during a phone call with investment bankers, attempting to validate false claims about financial backing from YouTube. This deception backfired when the bankers became suspicious, ultimately leading to the unraveling of potential investments and exposing Ozy's fraudulent practices.

Throughout the trial, Watson's defense team focused on portraying Rao as the mastermind behind the fraudulent activities, attempting to discredit his testimony as self-serving and unreliable. They emphasized Watson's focus on Ozy's creative and strategic direction, arguing that he delegated financial and operational responsibilities to Rao and others within the company.

The downfall of Ozy accelerated after a critical article in The New York Times in September 2021, which exposed Rao's deceptive practices and raised questions about the startup's credibility regarding its audience metrics.

As Carlos Watson awaits sentencing, the implications of Ozy Media's collapse and the ensuing legal fallout underscore broader concerns about corporate governance, startup accountability, and the pressures faced by entrepreneurs in the competitive media industry.