CEO and co-founder of Ozy Media Carlos Watson arrives at Brooklyn Federal Court, Friday, June 7, 2024 in New York. Co-founder and former Chief Operating Officer of Ozy Media Samir Rao arrives at Brooklyn Federal Court, Friday, June 7, 2024 in New York. CEO and co-founder of Ozy Media Carlos Watson arrives at Brooklyn Federal Court, Friday, June 7, 2024 in New York.
A Harvard and Stanford-educated son of two South Florida teachers, Watson had worked on Wall Street, started and sold a test-prep company and anchored on MSNBC. He conceived of Ozy and then recruited Rao, a former finance-world colleague, after a chance meeting at a Chipotle restaurant in Silicon Valley, according to Rao.
Meanwhile, Ozy frequently delayed paying vendors and rent, borrowed against future receipts to get pricey cash advances and struggled to make payroll, former finance vice president Janeen Poutre testified.“Ozy Media did not defraud its investors or anyone else,” said the company’s lawyer, Shannon Frison.
Rao told jurors that Watson verbally approved the charade. Jurors saw a text message from Watson exhorting Rao to “be bold, get it done,” but the ”it” wasn’t specified. Ultimately, witnesses said, neither the loan nor the show renewal happened. The investment didn’t materialize, but Goldman Sachs continued advertising with Ozy after the episode, Rao said.