Greater than a yr after the media firm was shut down after dropping tens of millions of {dollars}, the CEO of Tony Media has been arrested whereas being charged with fraud.

In response to CNN, Carlos Watson, the founding father of the startup enterprise, Ozy Media was arrested on Thursday on fraud prices. The embattled CEO was accused of getting “engaged in a scheme to defraud OZY’s buyers, potential buyers, potential acquirers, lenders and potential lenders.”

A spokesperson from the Division of Justice acknowledged that Watson was launched on a $1 million bond and is due again in courtroom subsequent month on March 8. If he’s convicted of the crimes, Watson will probably be a compulsory minimal sentence of two years in jail as much as a most sentence of 37 years.

Breon Peace, the USA Legal professional for the Japanese District of New York stated, “As alleged, Carlos Watson is a con man whose enterprise technique was based mostly on outright deceit and fraud – he ran Ozy as a felony group slightly than as a good media firm.”

Watson was arrested by the FBI Thursday morning on the Resort NH Assortment at 22 East thirty eighth St. in Manhattan.

Ozy Media began to unravel after The New York Instances reported concerning the alleged misleading practices Watson and the corporate took half in.

In a press release that was emailed to CNN, Watson’s legal professional, Lanny Breuer, confirmed that his consumer had been arrested and was shocked that the federal government took such a “dramatic” resolution.

“I’m deeply upset by the occasions of at the moment. We have been engaged in a very good religion and constructive dialogue with the Authorities. Given the Division’s claims of selling such dialogue, I don’t perceive the dramatic resolution to arrest Carlos at the moment.”

The Related Press additionally reported that Watson was additionally charged by the Securities and Trade Fee in a parallel civil case. Watson and Ozy Media was accused of defrauding buyers of about $50 million “by way of repeated misrepresentations in regards to the firm’s fundamental monetary situation, enterprise relationships, and fundraising efforts.”