Carlos Watson Accuses Co-Founder Rao of Faked Goldman Sachs Call in Fraud Trial Defense

At his trial for fraud, Ozy Media CEO Carlos Watson accused co-founder Samir Rao of orchestrating a fake phone call with Goldman Sachs to secure an investment. Watson testified that he was unaware of Rao's intention to impersonate a YouTube executive and was shocked by the strange call, which ended with him trying to terminate it. Watson maintains his innocence, countering allegations that he falsified earnings and audience data to defraud investors.

In a shocking turn of events at the ongoing fraud trial of Ozy Media, CEO Carlos Watson has accused his co-founder Samir Rao of masterminding a fake phone call with Goldman Sachs, impersonating a YouTube executive to secure an investment for the company [1].

According to court documents, Watson testified that he was unaware of Rao's plan to impersonate a YouTube executive and was taken aback by the bizarre call. Watson maintains his innocence, insisting that he did not know about the falsified earnings and audience data used to defraud investors [1].

The phone call, during which Watson was impersonated as a YouTube executive, was a part of an elaborate scheme to secure an investment from Goldman Sachs for Ozy Media. In previous negotiations, Watson and Rao had told Goldman executives that YouTube was interested in acquiring the rights to Ozy's flagship show, "The Carlos Watson Show." However, this was a lie, and the duo devised a plan to impersonate YouTube executive Alex Piper on a conference call using voice modification software [1].

During his testimony, Rao admitted to falsifying business records and practicing using the voice modification software to impersonate Piper. He expressed unease about the plan, acknowledging that it was not just about altering documents or emails, but also about pretending to be someone else [1].

The trial, which began earlier this month, has seen Watson, a Harvard graduate with a law degree from Stanford University, accused of securities and wire fraud conspiracies, aggravated identity theft, and lying about the company's revenue, profit earnings, and audience data to defraud investors [1].

In addition to Watson, former chief operating officer Samir Rao and onetime chief of staff Suzee Han have pleaded guilty to charges and are now cooperating with the government [1]. The pair are also named alongside Watson in a separate lawsuit filed by the U.S. Securities and Exchange Commission [1].

This development adds another layer of complexity to the ongoing trial and raises questions about the integrity of the leadership at Ozy Media. As the trial unfolds, more details are likely to emerge, shedding light on the extent of the fraud and the individuals involved.

References:
[1] Courthouse News. (2023, March 20). Ozy-Media exec says he impersonated media exec to scam Goldman Sachs. Retrieved from https://www.courthousenews.com/ozy-media-exec-says-he-impersonated-media-exec-to-scam-goldman-sachs/