The founder of the troubled digital start-up Ozy Media was arrested Thursday on federal fraud charges as part of what prosecutors say was a scheme to prop up the financially struggling company, which hemorrhaged millions of dollars before it shut down amid revelations of possibly deceptive business practices.
Federal agents arrested Carlos Watson, 53, at a Manhattan hotel after two of the company’s top executives pleaded guilty this month to fraud charges, including Ozy’s then-chief operating officer, Samir Rao, who allegedly impersonated a YouTube executive during a pitch to Goldman Sachs, a potential investor.
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