Trump Commutes Ozy Media CEO Carlos Watson’s Prison Term \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump has commuted the nearly 10-year prison sentence of Ozy Media co-founder Carlos Watson, just hours before he was set to surrender. Watson was convicted of defrauding investors in a high-profile case that reflected the collapse of his once-hyped media startup.
Trump Commutes Carlos Watson Sentence: Quick Looks
- Carlos Watson’s 10-year sentence commuted by President Trump Friday
- Watson was convicted of financial fraud in 2023 over Ozy Media collapse
- Trump also issued clemency for Nikola founder Trevor Milton, BITMEX founders
- Prosecutors had accused Watson of inflating revenue, misleading investors
- Watson claimed he was selectively prosecuted, calling the case a “modern lynching”
- Ozy Media shut down in 2021 following a New York Times exposé
- Watson previously held roles at CNN, MSNBC, and launched Emmy-winning shows
Deep Look
In a surprise move just hours before Carlos Watson was due to begin serving a nearly 10-year prison sentence, President Donald Trump on Friday commuted the sentence of the embattled Ozy Media co-founder, whose high-flying startup collapsed amid allegations of financial fraud and deception.
The White House confirmed the commutation as part of a broader list of clemency actions that included pardons for Nikola founder Trevor Milton and the co-founders of cryptocurrency exchange BITMEX. Watson, who has consistently maintained that he was unfairly targeted, now avoids prison time in a case that many saw as emblematic of the media-tech boom and bust era.
A Startup Once Branded as “The New and the Next”
Founded in 2012, Ozy Media marketed itself as a forward-looking, multicultural media outlet dedicated to exploring “the new and the next.” It produced newsletters, podcasts, digital shows, and even hosted a music and ideas festival. Watson, a charismatic media figure with degrees from Harvard and Stanford Law, also hosted several programs, including the Emmy-winning Black Women OWN the Conversation on the Oprah Winfrey Network.
Behind the scenes, however, the company struggled to stay afloat. According to former employees, Ozy consistently overstated its revenue and struggled with basic financial obligations, including late payroll, unpaid rent, and mounting debts. The façade of success began to crack in fall 2021, when a bombshell New York Times report revealed troubling business practices and possible securities fraud, including a top executive impersonating a YouTube executive during a funding call.
Federal Charges and a Stunning Fall
Watson was arrested in February 2023, following the guilty pleas of two of Ozy’s top executives. Federal prosecutors accused him of orchestrating a scheme to deceive investors and lenders by fabricating financial statements, inflating revenue, and exaggerating partnerships.
During the trial, jurors heard testimony that Ozy had misled investors about its revenue, while simultaneously painting a picture of a well-capitalized and thriving media firm. In reality, the company had taken out expensive cash advances and gave potential backers inflated revenue figures that didn’t match those filed with accountants.
Former vice president of finance Janeen Poutre testified that the company was in survival mode, relying on borrowed funds to pay bills while overstating its financial health to the outside world.
After his conviction, U.S. District Judge Eric Komitee said during sentencing:
“The quantum of dishonesty in this case is exceptional.”
Federal prosecutors called Watson a “con man” who told “lie upon lie” in a scheme that caused serious financial harm. U.S. Attorney Breon Peace declared that Ozy “collapsed under the weight of Watson’s dishonest schemes.”
Watson’s Defense: “Selective Prosecution” and Racial Injustice
Despite the verdict, Watson repeatedly argued that the case against him was unfair and racially motivated. Referring to the proceedings as a “modern lynching,” he claimed he was being selectively prosecuted because of his race and visibility as a Black media executive.
“I made mistakes. I’m very, very sorry that people are hurt, myself included,” Watson said after sentencing. “But I don’t think it’s fair.”
Watson’s defense also pointed to similar white-led companies that engaged in misleading practices but were not criminally prosecuted.
His supporters, including some civil rights advocates, argued that the severity of his punishment was disproportionate and that the justice system had treated his case differently than those involving comparable white entrepreneurs.
Trump’s Expanding Use of Clemency Powers
Watson’s sentence commutation comes amid a broader wave of clemency acts under President Trump’s second term, which has seen him aggressively use pardons and commutations as political and cultural tools.
Friday’s list also included:
- Trevor Milton, the founder of Nikola, who was convicted of defrauding investors with misleading technology claims. Trump granted him a full pardon.
- The three co-founders of BITMEX, a major cryptocurrency exchange, who had been sentenced to probation and ordered to pay $100 million in fines for violating anti-money laundering laws. All three were pardoned.
A senior White House official, speaking on condition of anonymity, confirmed Watson’s commutation, though the official did not elaborate on Trump’s rationale. Watson’s legal team declined to comment.
The president, who himself was convicted in a hush money case he described as a political witch hunt, has repeatedly claimed the justice system is rigged against certain individuals — particularly those he views as allies or victims of overzealous prosecution.
“The justice system is broken and corrupt,” Trump recently said. “We’re fixing that — one pardon at a time.”
Legacy and Fallout for Ozy
Ozy’s collapse in 2021 marked one of the most stunning falls in recent media memory. Despite support from high-profile investors and brand partners, the company unraveled quickly after media reports exposed its internal instability.
Watson, who previously worked at Goldman Sachs, and held commentator roles at CNN and MSNBC, had once been hailed as a trailblazer bringing diverse voices into mainstream media. His fall — and now commutation — raises questions about accountability, selective justice, and the future of trust in startup media ventures.
What happens next for Watson remains uncertain. His criminal conviction still stands, but the commutation spares him from prison. Legal experts note that commutation does not erase the conviction, but it ends the punishment.
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