In a dramatic turn of events, Ozy Media’s charismatic founder, Carlos Watson, has vehemently denied defrauding investors in his now-defunct media venture. Watson, a former MSNBC and CNN host and an Emmy-winner, finds himself entangled in a federal criminal case that he claims is racially motivated. He insists that the charges against him are part of a broader issue that disproportionately affects people of color and marginalized communities.
Watson’s arrest in February followed the guilty pleas of two high-ranking Ozy executives, including former COO Samir Rao. Prosecutors allege that Rao impersonated a YouTube executive during a reference call with potential investor Goldman Sachs. Watson’s defense team contends that he is being unfairly targeted due to what he describes as “entrepreneuring while black.”
In a written statement, the 54-year-old Watson argued that he is a victim of racial profiling, stating, “While it’s horrifying to think that white prosecutors would target me, every person of color knows that it happens.”
Watson’s attorneys filed a motion to dismissal the case, claiming that he is being charged for behavior that is common in the world of media startups. Federal prosecutors have vigorously denied these claims, asserting that Watson is facing charges solely for his alleged criminal activities.
The upcoming hearing in Brooklyn on Thursday, October 26, 2023, will address Watson’s motion to dismiss and another motion to suppress evidence that he claims was illegally obtained. The US Attorney’s Office in Brooklyn, where the charges were filed, declined to comment on Watson’s allegations.
To support his argument that the case should be dismissed on Constitutional grounds, Watson’s attorneys pointed to their analysis of prior cases handled by the three prosecutors assigned to Watson’s case. They claim that 90 percent of the defendants charged by these prosecutors were non-white, a stark contrast to the overall non-white population in the district.
Prosecutors rejected this statistical analysis, contending that Watson’s attorney, Ronald S. Sullivan Jr., “ignores the well-documented fact that crime rates vary among racial groups“, and should not be used as a sole determinant. Sullivan argued that racial disparities in criminal conviction rates are often the result of discriminatory policing and prosecution practices, rather than differences in crime rates among racial groups.
The indictment against Watson, unsealed in February, includes charges of conspiring to commit securities fraud and wire fraud. Watson is also accused of identity theft related to an Ozy executive’s alleged impersonation of a media executive. Watson emphasized that he has faced racism throughout his life and overcame various challenges to attain success.
After working at McKinsey & Company and Goldman Sachs, Watson embarked on a career in media, initially as a political commentator on cable news and later as the anchor of an MSNBC show. He founded Ozy in 2012 with financial support from investors like Laurene Powell Jobs.
Ozy was conceived as a platform for “the New and the Next,” providing fresh perspectives, introducing rising stars, and offering new insights into various topics. However, the company struggled under a mountain of debt and questions regarding its fundraising tactics.
The New York Times reported in October 2021 that one of Watson’s top aides, Samir Rao, posed as a YouTube executive while Goldman Sachs was making an investment reference call, dealing a significant blow to Ozy’s reputation.
US Attorney Breon Peace, himself African American, characterized Watson as a “con man” who had run Ozy like a criminal organization. Watson’s attorney Sullivan, however, argued that Peace might not be aware of discriminatory practices occurring within his office. He likened the situation to saying that a police chief’s race ensures non-discriminatory policing within their jurisdiction.
Sullivan also questioned why the case was brought in Brooklyn when Watson and Ozy were based in California, suggesting that prosecutors ignored other cases of fraud involving New York-based companies. Watson’s defense has compared his situation to other media firms, such as Vice Media and BuzzFeed, which had reportedly employed questionable tactics to attract investors.
Carlos Watson, who remains steadfast in his denial of the charges, sees this legal battle as a larger struggle for racial equality. He stated, “The beauty of adversity is that it reveals who you truly are. Every morning, I look in the mirror and remember why I started OZY – to give a voice to the voiceless and bring light to dimly lit corners of the world. That mission is larger than me, larger than these charges, and it fortifies me each day.”
In a contentious legal battle with wide-reaching implications, Carlos Watson’s claims of racial bias will be closely examined as the case unfolds in Brooklyn.
Dear Friends, As per my previous article on this subject Tuesday, March 2 is a big day in Chancery Court history. Chancellor Andre Bouchard has a significant opportunity – before leaving his position as Delaware’s Chancellor – to rectify and offer some equity to the TransPerfect folks, after years of unregulated, undocumented, and suspicious billing activities from his former business partner Bob Pincus from the Skadden Arps law firm. Will Andre Bouchard continue his shadow operation, seemingly showing grotesque bias without an inkling of transparency in this case? Citizens are calling for openness and fairness in this litigation, which has been filled with appearances of impropriety. Please read the article below and send me your feedback. [avatar user=”Judson Bennett” size=”thumbnail” align=”left” link=”https://twitter.com/Judson_Bennett” target=”_blank”]Sincerely yours, JUDSON Bennett-Coastal Network[/avatar] Citizens for a Pro-Business Delaware Calls for Transparency and Open Access in Upcoming TransPerfect Court Case Mon, March 1, 2021, 10:59 AM CPBD calls for open access to oral arguments in upcoming TransPerfect court appearance to bolster transparency and confidence in the Chancery Court On Tuesday, March 2, outgoing Chancellor Bouchard of the Delaware Chancery Court is set to hear oral arguments in the TransPerfect case without a Zoom link for affected employees to observe and participate in the hearing. The lack of transparency comes despite courtroom protocols implemented on June 8, 2020 stating that “the Court of Chancery will continue to conduct hearings telephonically or using video technology whenever it is practicable to do so at the discretion of the presiding judge.” The lack of transparency follows years of advocacy for more transparency on the Chancery Court by Citizens for a Pro-Business Delaware (CPBD). Despite a clear public interest in the case and stated court protocols, Chancellor Bouchard has still resisted video access to the hearing, one of his final hearings before his premature retirement in April. CPBD is calling on Bouchard and the court to provide a public Zoom link to remedy the disturbing lack of transparency on display. Chris Coffey, Citizens for a Pro-Business Delaware Campaign Manager, said of the decision not to allow open access, “How can employees ensure fair treatment when there is no access to the court? Especially when the means for transparency is already being used for other cases in the court. Of course, it’s no surprise that Chancellor Bouchard has once again opted to operate in the shadows, given his years of resistance towards any meaningful transparency measures. Instead of continuing to undermine confidence in the court, Bouchard should use his final months to try and repair his legacy by establishing a new baseline of transparency and accountability, but I won’t hold my breath.”Dear Friends, The countdown clock is ticking, folks, with Chancery Court Chancellor Andre Bouchard’s retirement effective April 30th, and it can’t happen soon enough. Now, what’s next for the Good Ole Boy’s Club that flies around in G5 airplanes off the back of regular workers? Will the cronies of the elite, corrupt, outgoing Chancellor Bouchard do something about our All-White Chancery Court? Will they follow Biden’s lead, who has publicly promised the next SCOTUS judge will be a Black woman? Diversity isn’t exactly my issue — but corruption, lies and hypocrisy among the Democratic Latte Liberals that run this is the state is my issue. One should not be chosen, in my view, by the color of their skin — but our all-white Chancery Court must have been absent the year they taught legal ethics at Harvard. ALSO: Stay tuned, folks, for full coverage on an upcoming March 2 hearing where my sources say Bouchard is expected to yet again fleece TransPerfect workers out of millions, one last time, in favor of his former employer, Skadden Arps. Bias, corruption and lies have marred Bouchard’s entire career as Chancellor, will he close on a judicial note — or wallow in a new level of filth — in his last act? More coverage to follow! Respectfully Yours, [avatar user=”Judson Bennett” size=”thumbnail” align=”left” link=”https://twitter.com/Judson_Bennett” target=”_blank”]Judson Bennett–Coastal Network[/avatar] Citizens for a Pro-Business Delaware Launches Mobile Billboard to Expose Racial Inequality in the Chancery Court The campaign to increase diversity within the Delaware judiciary continues as the grassroots organization moves its platform to the streets. February 26, 2021 09:03 AM Eastern Standard Time DOVER, Del.–(BUSINESS WIRE)–After countless calls for representation within Delaware’s state government and judiciary have fallen on deaf ears, Citizens for a Pro-Business Delaware made a bold statement urging increased racial diversity through a new mobile billboard advertisement. With Chancery Court Chancellor Andre Bouchard’s retirement effective April 30th, the good government group is pleading with Governor John Carney to appoint a Black justice to the state’s Chancery Court. After Biden’s affirmed commitment to appoint a Black woman to the Supreme Court, CPBD is urging Governor Carney to follow in the President’s progressive vision in dismantling systemic injustice by instituting diversity on the courts. Notable community leaders, such as Pastor Blaine Hackett of historic St. John African Methodist Church, in Newark and civil rights leader Reverend Al Sharpton have echoed the grassroots organizations’ efforts for diverse leadership and equity. CPBD has already mobilized 750 Delaware residents to send emails to Governor Carney insisting on the appointment of a Black justice. The $250,000 awareness campaign focused on equity has funded print, radio, and digital advertisements to broadcast vacancies and urge leadership to take a stand on advancing diversity and inclusion. “Now, more than ever, it is imperative that our courts visually and morally represent the residents of Delaware. For far too long, the Chancery Court has failed to reflect the diversity of those it claims to serve,” said Chris Coffey, Campaign Manager for Citizens for a Pro-Business Delaware. “We are requesting a Black justice to the Chancery Court, not only because it is in the best interest of the people, but because it is the right thing to do. When faced with the opportunity to correct the past and create change, we must not turn a blind eye”.Once again, a newspaper in Europe is writing about America’s First State — that’s Delaware, in case you didn’t know. In my view, this continuous and suspiciously absurd, seemingly biased operation that Chancellor Bouchard conducts in his Chancery Court is again raising its ugly head on the world stage.
This time it is mostly about racial diversity in Delaware, and a Spanish newspaper is writing about it. Criticism is being leveled at both the Skadden Arps law firm and the Delaware Court system itself. Frankly, folks, I don’t care about forced diversity and I think affirmative action has gone way further than it ever should have. I am about hiring the most qualified individual, regardless of race, sex, religion, or sexual orientation. But it is clear that the issues with the Delaware courts go beyond Republican and Democrat. We may not all agree on the solution, but it sure seems like we can agree there’s something rotten going on in Delaware’s courts, when rich country club friends are scratching each other’s back with taxpayer money.
Folks, please read the article below and get the European perspective which is significant, because it indicates the long term, international effect that Bouchard’s subjective rulings have had on business and Delaware’s future as an international incorporation destination.
The criticisms that this state has received from the North American east coast, once known for its fiscal advantages and its ability to attract companies, have diminished its competitiveness.
The TransPerfect case is one of the most complex and media in recent years. As a result of this controversy, more than 600 jobs in Barcelona and 5,000 worldwide were endangered, and the serious shortcomings of the Delaware judicial system that directly affect their businesses and citizens have been revealed.
The criticisms that this State has received from the North American east coast, once known for its fiscal advantages and its ability to attract companies, have diminished its competitiveness. Delaware citizens have watched helplessly as Supreme Court Judge Andre Bouchard decreed in recent years the forced sale of a private company with benefits.
This puts jobs at risk and granted control of the group to the Skadden law firm for personal affinities by hiding the records of the TransPerfect case to public opinion, among others. These actions have caused a negative impact on the prestige of the Delaware judicial system among American companies, institutions, and professionals.
Protests for lack of diversity
The lack of diversity has opened a new chapter in the crisis of its judicial system. The problem has gained greater social prominence since the U.S. Department of Justice opened an investigation to Judge Bouchard and Robert Pincus, a partner of Skadden, who managed the process of selling the TransPerfect company for alleged discrimination during 2017 when the company was under your control.
Civil and social rights activists such as the Reverend Al Sharpton and Dale Dennis have charged against the lack of diversity and led marches in Delaware claiming that judicial estates are not filled only by white men. They have also undertaken a commission to study diversity in the judicial system of the State of Delaware to give notoriety to this problem.
Reverend Dennis has led a protest rally at the doors of the Senate. And it is that the Executive Committee of this House has approved that Judge Paul Fioravanti replace the magistrate Tamika Montgomery-Reeves as a member of the Supreme Court of Delaware, while Al Sharpton has been denied the opportunity to testify in said judicial hearing.
Skadden, in the center of criticism
The Skadden Law Firm has been one of the main focuses of social criticism. Despite making a flag of diversity in their communications, the reality is that 9 out of 10 associates of the firms are Caucasian.
Bouchard and Pincus come from this firm, both involved in the controversy of the TransPerfect case and investigated by the US Department of Justice for alleged racial discrimination. In this sense, Pincus acted as the judicial administrator of the company during the sale process and during his tenure, he reduced the benefits in a proportionate manner to minority employees. In parallel, it swelled the bill in favor of Skadden.
4.1 million sanction
The firm had to pay about 4.1 million euros of sanction in 2019 for breaching the US Foreign Agents Registration Act (FARA) in the political lobbying works carried out with the convicted Paul Manafort. They are accused of benefiting the Government of Ukraine in 2012 and 2013 in favor of Viktor Yanukovych, president of that country from 2010 to 2014.
Sharpton and Dennis have affirmed by letter that, due to Skadden’s high weight in the State’s judicial system, it is precisely those who have the most obligation to promote diversity among their associates and the judges of the State. In the statement, they have also asserted that “the Delaware Court should resemble the people of Delaware, not just a minority.”
Look, folks, if you have been paying attention in recent years, you’ll know that I am an advocate against some of the actions I have observed by the law firm of Skadden Arps. Indeed, after I saw, in my opinion, how they dominated the Chancery Court in the recent TransPerfect case, which made countless headlines from the procedures that took place in this Court over the past few years, I am simply amazed? It appears to me from the complaints I have received and the apparent incessant situation I have witnessed, that Skadden has possibly turned TransPerfect into their own monetary printing press! Outrageously, their billing of TransPerfect apparently continues to this day! I cannot understand this?
The Dover Post story below points out flaws in the Delaware courts and shows where change is needed. And chief among the offenders of this is the Skadden Arps firm, which, as I see it, is where these offenders learn their tradecraft and then move through the ranks of the Delaware Chancery Court and upper court system.
And now, on top of all of this, Skadden Aprs and Andre Bouchard’s Chancery Court is now facing racism charges and has been called upon by Reverend Al Sharpton to increase diversity and inclusion efforts. After Tamika Montgomery–Reeves’ move to Delaware’s Supreme Court, the Chancery Court is now back to its all-white status quo.
As an aside, Diversity Claims and Affirmative Action after years of it, are certainly not my priority, however, it is in the news and worth mentioning.
See the Dover Post story below for the changes being demanded at the Chancery Court.
By Emily Lytle
Originally Published in the Dover Post: Jan. 15, 2020
Pastors and community members rallied outside Legislative Hall Jan. 15.
The Rev. Dale Dennis II of Hoyt Memorial C.M.E in Wilmington led a rally in Dover to advocate for more African American representation in Delaware’s courts. He said he is fighting for his young daughter.
“As a diverse state, we must begin to make sure that people can see themselves as the future and the right-now of America,” Dennis said.
He joined the Rev. Blaine Hackett of St. John Africa Methodist Church, the Rev. Alfred S. Parker Jr., president of Methodist Ministers’ Alliance, and several residents outside Legislative Hall as the Delaware Senate Executive Committee considered Paul Fioravanti Jr.’s nomination to the Court of Chancery Jan. 15.
Fioravanti’s nomination was later confirmed. He will replace Justice Tameeka Montgomery-Reeves who became the first African American judge on the state Supreme Court Jan. 3.
“Paul’s litigation experience and judgment will serve our state well on the Court of Chancery, our country’s premier venue for corporate litigation,” Gov. John Carney said in a statement. “I want to thank members of the Delaware Senate for considering and confirming his nomination.”
Hackett believes there needs to be a greater African American presence to speak up for the more than 60% of Delaware’s prison population that is black.
“Black folk, we are being pushed farther under the totem pole,” Hackett said. “We’re out here shedding our blood. We’re out here being beat and incarcerated at levels like no other race. And yet nobody is fighting our cause, championing our cause, very few.”
Four of the 34 justices who serve on the three highest courts in Delaware are people of color.
The rally came after civil rights activist the Rev. Al Sharpton was denied the opportunity to testify about diversity in the state’s courts at the hearing. He has visited Delaware to talk about this over the past several months and wrote to law firm Skadden Arps, calling for elite firms to do their part in advancing people of color in the legal industry.
“To say that I am disappointed I was denied the opportunity to testify before the Delaware State Senate on the matter of [Mr. Fioravanti’s] confirmation would be an understatement,” Sharpton said in a separate statement released to Delaware Business Now. “Diversity transferred is not diversity created or advanced. Delaware must do better. Governor Carney and the State Legislature must do better. I welcome the opportunity to discuss this issue further with them, and will not rest until we address this injustice.”
Representatives from Citizens for a Pro-Business Delaware attended the rally and supported the leading pastors.
“It’s disappointing the Senate chose not to hear from Reverend Sharpton, whose moral credibility on issues of racial justice is beyond question, but today’s rally showed just how important this issue is to countless Delawareans,” said Chris Coffey, campaign manager for Citizens for a Pro-Business Delaware.
Dennis said this is a change that cannot wait.
“We must continue to make sure that when our children look at our courts, our children see people who look like them and remind them of what their future can be and allow them to know that they can overcome any obstacle and they can achieve anything in the great United States of America,” Dennis said. “But, it starts with us holding our feet to the fire to say that it is absolutely important for us to make sure that our courts are diverse. And it’s time for diversity now.”