Trump grants clemency to Ozy Media co-founder convicted of fraud

Hours before he was scheduled to report to prison and begin serving a nearly 10-year sentence for a federal fraud conviction, former talkshow host and media executive Carlos Watson received clemency from Donald Trump, sparing him from the punishment Friday.

Watson was traveling to the Lompoc, California, federal correctional institution when he learned of the presidential commutation afforded to him, as CNBC reported. He published a statement which thanked the president and insulted the Trump-appointed federal judge who sentenced him, Eric Komitee, as “conflicted and unethical”.

“I am profoundly grateful to President Trump for correcting this grave injustice,” Watson’s statement said. “His decision reflects his unwavering commitment to fairness and justice for those who have been wrongfully targeted.”

Watson’s clemency came a little more than two months after Trump, at the start of his second presidency, stoked controversy by granting unconditional pardons or commutations to 1,500 people charged or convicted in the US Capitol attack carried out on 6 January 2021 by supporters of his who were upset that he had lost the 2020 presidential election to Joe Biden.

Among others to get clemency on Friday from Trump was Trevor Milton, who founded electric vehicle manufacturer Nikola. Milton, who donated nearly $2m alongside his wife to Trump’s successful run for a return to the Oval Office, had been sentenced to four years in prison for fraud before he landed a pardon from the president.

In Watson’s case, federal prosecutors for the eastern district of New York pursued the ex-cable news commentator for allegedly deceiving investors and lenders of his Ozy Media startup by inflating earnings figures from 2018 to 2021. They also said Watson lied about having completed business deals that either did not exist or were not finalized.

Prosecutors contended that, at one point, a co-founder of Ozy posed as a YouTube executive hailing the company on a telephone call with prospective investors while being texted talking points by Watson – who furtively listened in.

Watson, 55, and Ozy itself, which launched in 2012 but has since been shuttered, were eventually charged and convicted at a trial in July of crimes including wire fraud conspiracy. Komitee in December ordered him to spend nine years and eight months in prison, telling Watson at his sentencing hearing: “The quantum of dishonesty in this case is exceptional.”

The judge also ordered him and Ozy to pay $96m in restitution and forfeiture while sentencing the company to a year of probation.

A statement from the US attorney for New York’s eastern district at the time, Breon Peace, said Watson’s “sentence should serve as a warning to those who would engage in fraud that justice will be swift and certain”.

Peace, appointed to his role by Biden, resigned in the days before Trump’s second presidential inauguration in January.

Trump’s action on Friday ultimately eliminated the penalties Komitee imposed on Watson. The president extended clemency to Ozy, too, wiping out the company’s punishments as well.

Nonetheless, Watson maintained his innocence throughout the case. In his statement on Friday, Watson alluded to some of his defunct company’s successes – among them the Emmy-winning Black Women OWN the Conversation, which he hosted and appeared on the Oprah Winfrey Network.

He asserted that jealous competitors orchestrated what Watson characterized as a “malicious” prosecution, adding: “We are ready to move forward, guided by the lessons I learned.”

The Associated Press contributed reporting