Ozy Media Inc. Chief Executive Officer Carlos Watson was arrested Thursday morning on US securities fraud charges while former Chief Operating Officer Samir Rao pleaded guilty to federal charges, a person familiar with the matter said.
(Bloomberg) — Ozy Media Inc. Chief Executive Officer Carlos Watson was arrested Thursday morning on US securities fraud charges while former Chief Operating Officer Samir Rao pleaded guilty to federal charges, a person familiar with the matter said.
Watson is expected to make an initial court appearance in federal court in Brooklyn, New York, later on Thursday, the person said, while Rao secretly pleaded guilty to one count of conspiracy to commit securities fraud and other charges including one count of identity theft.
Suzee Han, Ozy’s former chief of staff, also secretly pleaded guilty to falsifying financial information about the company, according to the person.
Lanny Breuer, a lawyer for Watson, didn’t immediately respond to requests for comment.
The Wall Street Journal first reported Watson’s arrest and Rao’s guilty plea.
Ozy, a once high-flying media startup backed by Marc Lasry, was sent into tailspin after the New York Times reported in November 2021 that Rao impersonated a Youtube executive to tout the company in a call with Goldman Sachs Group Inc. bankers.
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