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Megyn Kelly Details the Curious Case of Carlos Watson, and Shocking Downfall of the Disgraced Media Mogul | Ep. 969

The Megyn Kelly Show

Published: Thu Dec 19 2024

Megyn Kelly dives into the curious case of the disgraced former media mogul Carlos Watson, who was just sentenced to nearly 10 years in prison this week. She talks about her own backstory with Watson beginning in 2020, the unexpected twists and turns that followed, the rise and fall of his Ozy Media empire, the fraudulent scheme that was uncovered, how it all eventually became crashing down, his legal perils, his attempt to rehab his image by playing the race card, Watson canceling an interview with her just weeks ago, and more. Learn more about the Durbin Marshall Credit Bill: https://GuardYourCard.com

Summary

The Megyn Kelly Show: The Curious Case of Carlos Watson and the Shocking Downfall of a Media Mogul | Ep. 969

Release Date: December 19, 2024
Host: Megyn Kelly
Platform: SiriusXM

Introduction

In Episode 969 of The Megyn Kelly Show, host Megyn Kelly delves deep into the enigmatic rise and dramatic fall of Carlos Watson, the once-prominent media mogul behind Ozzy Media. This episode meticulously unpacks Watson's fraudulent activities, the subsequent legal battles, and the broader implications for the media landscape. Kelly provides a comprehensive analysis, enriched with firsthand accounts, legal insights, and critical evaluations of Watson's actions.

Background on Carlos Watson and Ozzy Media

Carlos Watson, a Harvard undergraduate and Stanford Law School graduate, transitioned from a promising career in law and media to founding Ozzy Media in 2013. Initially celebrated for his charisma and ambitious vision, Watson positioned Ozzy Media as a dynamic digital platform aiming to revolutionize media consumption.

Notable Quote:

"Ozzy boasted of a large audience for its general interest website, its newsletters, its videos. And the company had a charismatic chief executive, Carlos Watson, a one-time cable news anchor."
— Megyn Kelly [03:21]

Fraudulent Activities and Misrepresentations

Despite Ozzy Media's outward success, internal investigations revealed a web of deceit orchestrated by Watson and his executive team. Central to the fraud was the manipulation of YouTube metrics and fabricated business relationships to secure substantial investments from entities like Goldman Sachs.

Key Points:

  • YouTube Metrics Manipulation: Ozzy Media falsely claimed millions of subscribers and inflated video view counts. In reality, engagement metrics such as comments were disproportionately low, indicating artificial inflation of popularity.

  • Impersonation of YouTube Executives: To secure a $40 million investment from Goldman Sachs, Watson and his COO, Samir Rao, impersonated YouTube executives. This deception was aimed at validating Ozzy Media's reported success.

  • Fake Contracts and Loan Inducement: Watson directed the creation of counterfeit contracts with supposedly prestigious networks like the Oprah Winfrey Network (OWN) to entice loans based on non-existent deals.

Notable Quote:

"They lied about revenue and contractual relationships to outside investors while silencing or ignoring concerns raised by employees."
— Megyn Kelly [17:58]

The Trial and Prosecution's Case

The Department of Justice (DOJ) meticulously built a case against Watson, highlighting the audacity and extent of his fraudulent schemes. Over an eight-week trial, evidence was presented showcasing a systematic effort to defraud investors and lenders.

Key Points:

  • Charges Filed: Watson faced multiple charges, including conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft.

  • Prosecution's Evidence: Testimonies from former executives, including Samir Rao and CFO Tripty Thacker, exposed the depth of the fraud. Rao admitted to impersonating YouTube executives, while Thacker provided critical insights into the internal resistance against Watson's deceptive practices.

  • Comparison to Elizabeth Holmes: The prosecution drew parallels between Watson and Theranos founder Elizabeth Holmes, emphasizing the similarity in their fraudulent tactics and the magnitude of deception.

Notable Quote:

"The history and characteristics of the defendant also weigh in favor of a serious sentence. He is dishonest. The ease with which he lied to victims again and again, and the ease with which he lied on the stand is frankly unsettling."
— Prosecutor [33:09]

Megyn Kelly's Interviews and Analytical Commentary

Throughout the episode, Kelly references her previous interactions with Watson, including his appearances on Ozzy Media's platform and her personal attempts to engage with him. She critically examines Watson's justifications and his attempts to manipulate narratives surrounding his actions.

Key Interviews:

  • Andrew Ross Sorkin on CNBC: Discusses the fraudulent conference call between Samir Rao and Goldman Sachs, emphasizing the deliberate intent behind the impersonation.

  • Ben Smith on The Today Show: Clarifies misconceptions about offers from BuzzFeed, discrediting Watson's claims of attempted acquisitions.

Notable Quote:

"Carlos Watson was full of wind and decided to shortchange everything and behave in a criminally fraudulent manner. And it had nothing to do with snuffing out Black Excellence that he got criminally charged for his crimes."
— Megyn Kelly [22:38]

Sentencing and Aftermath

Following a rigorous trial, Watson was convicted and sentenced to nearly a decade in prison. The DOJ highlighted the exceptional dishonesty and manipulative behavior exhibited by Watson, underscoring the seriousness of his crimes.

Key Points:

  • Sentence Details: Carlos Watson received a sentence of 116 months (approximately 9 years and 8 months) in prison.

  • Judge's Statement: United States District Judge Eric Comatee emphasized the "exceptional" nature of Watson's dishonesty and the profound impact of his fraudulent activities on investors and the justice system.

  • Comparative Sentencing: Watson's sentence was likened to that of Elizabeth Holmes, reflecting the gravity of his offenses.

  • Current Status: At the time of the episode, Watson was free on a $3 million bond but was scheduled to surrender to prison on March 28th, with restitution proceedings to follow.

Notable Quote:

"The quantum of dishonesty in this case is exceptional. It's exceptional."
— Prosecution [33:52]

Conclusion

Megyn Kelly's detailed exploration of Carlos Watson's rise and fall serves as a cautionary tale about the perils of unchecked ambition and fraudulent practices in the media industry. By dissecting Watson's deceptive strategies and the subsequent legal repercussions, Kelly underscores the importance of integrity and transparency in business endeavors. The episode not only sheds light on a high-profile fraud case but also reflects on broader issues of trust and ethics within the digital media landscape.

Final Reflections:

"You decided to shorttrack it, to shortchange your journey to the top, like neither a gentleman nor your average rogue."
— Megyn Kelly [48:45]

Key Takeaways

  1. The Importance of Due Diligence: Investors must critically assess claims and verify metrics to avoid falling prey to sophisticated frauds.

  2. Ethical Leadership: Watson's case highlights the critical role of ethical leadership in maintaining organizational integrity and trust.

  3. Regulatory Oversight: The DOJ's intervention underscores the necessity of regulatory bodies in safeguarding investor interests and ensuring market fairness.

  4. Media Responsibility: As a media platform, Ozzy Media's misuse of influence and falsified metrics serves as a stark reminder of the power and responsibility inherent in digital media.

Notable Quotes with Timestamps

  • Megyn Kelly [03:21]:
    "Ozzy boasted of a large audience for its general interest website, its newsletters, its videos. And the company had a charismatic chief executive, Carlos Watson, a one-time cable news anchor."

  • Megyn Kelly [17:58]:
    "They lied about revenue and contractual relationships to outside investors while silencing or ignoring concerns raised by employees."

  • Megyn Kelly [22:38]:
    "Carlos Watson was full of wind and decided to shortchange everything and behave in a criminally fraudulent manner."

  • Prosecutor [33:09]:
    "The history and characteristics of the defendant also weigh in favor of a serious sentence. He is dishonest..."

  • Megyn Kelly [48:45]:
    "You decided to shorttrack it, to shortchange your journey to the top, like neither a gentleman nor your average rogue."

Final Thoughts

Megyn Kelly's exploration of Carlos Watson's fraudulent empire offers listeners an in-depth understanding of how charisma and ambition can be weaponized to perpetrate financial deceit. The episode serves as an essential narrative for aspiring media professionals and investors alike, emphasizing the paramount importance of ethics and transparency in all business dealings.

Connect with Megyn Kelly:
Share your thoughts and feedback on this episode by emailing megyn@megyanagelsey.com.

Disclaimer: This summary is based on the transcript provided and is intended for informational purposes only.

No transcript available.