ENCORE: Ozy Media: Pivot to Fraud
3/23/202646 min
We’ll be back in two weeks with brand new episodes. In the meantime, here’s one of our favorite episodes, about a wannabe media magnate whose big vision ran on even bigger lies.
Carlos Watson is a Stanford Law School graduate with big Silicon Valley connections and even bigger dreams. When he pitches investors on his idea for a Millennial-focused news website called Ozy Media, it seems like a sure bet. It’s the early 2010s, and online media start-ups have generated tons of buzz – and more importantly, tons of clicks. But Carlos doesn't actually know what he’...
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First 90 secondsSarah Hagi· Host0:00
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Scaachi Koul· Host0:08
We'll be back in two weeks with an all-new episode of Scamfluencers, but today we're revisiting the spectacular rise and even more spectacular fall of former political pundit and wannabe media scion, Carlos Watson.
Sarah Hagi· Host0:23
That's right, we're talking about Ozy Media, a scrappy media startup that was so desperate to succeed, they juiced their views and scammed their investors, business partners, and customers.
Scaachi Koul· Host0:34
Carlos was convicted in federal court and sentenced to nearly 10 years in prison for fraud. He was literally on his way to report to a federal correctional institution in California last year when everything changed. Just hours before he was set to begin serving his sentence, Carlos was pardoned by President Trump.
Sarah Hagi· Host0:53
[sighs] Some people get all the luck, you know? [laughs] A presidential pardon. Why? Why? Anyway, good for him.
Scaachi Koul· Host1:01
Couldn't happen to a nicer guy, I think. [laughs] In a statement, Carlos thanked the president for what he called correcting a, quote, "grave injustice." He also criticized the federal judge who sentenced him as, quote, "conflicted and unethical." And the clemency didn't just apply to Carlos personally. The president's actions also wiped out the penalties imposed on Ozy Media.
Sarah Hagi· Host1:25
It's like it never happened at all and nobody was affected by it in any way.