NEW YORK (AP) – Former talk show host Carlos Watson was sentenced to nearly 10 years in prison in a federal financial conspiracy case that cast his once-buzzy Ozy Media as an extreme of fake-it-’til-you-make-it startup culture.

In one example, another Ozy executive impersonated a YouTube executive to hype Ozy to investment bankers – while Watson coached him, prosecutors said.

Watson, 55, and the now-defunct company were found guilty last summer of charges including wire fraud conspiracy. He has denied the allegations and plans to appeal.

“I loved what we built with Ozy,” he said in court, initially addressing supporters in the audience before the judge suggested he turn around. Watson told the judge he was a target of “selective prosecution” as a Black entrepreneur in Silicon Valley, where African American executives have been disproportionately few, and he called the case “a modern lynching”.

“I made mistakes. I’m very, very sorry that people are hurt, myself included,” he said, but “I don’t think it’s fair.”

Watson, who faced a mandatory minimum sentence of two years in prison and potentially as much as 37 years, remains free for now on USD3 million bond. He is to surrender to prison on March 28. Any restitution will be determined after a hearing in February. United States (US) District Judge Eric Komitee said on Monday that the “quantum of dishonesty in this case is exceptional”.

“Your internal apparatus for separating truth from fiction became badly miscalibrated,” he told Watson in sentencing him.

Prosecutors accused the former cable news commentator and host of playing a leading role in a scheme to deceive Ozy investors and lenders by inflating revenue numbers, touting deals and offers that were nonexistent or not finalised, and flashing other false indications of Ozy’s success.

Watson even listened in and texted talking points while his co-founder posed as a YouTube executive to praise Ozy on a phone call with potential investors, prosecutors said.

“His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness that should underlie American entrepreneurship,” Brooklyn-based US Attorney Breon Peace said in a statement.

His office prosecuted the case.

During the trial, Watson’s defence blamed any misrepresentations on others, particularly co-founder Samir Rao and former Ozy chief of staff Suzee Han. She and Rao pleaded guilty, are awaiting sentencing and testified against Watson.

Watson portrayed himself as a founder who put everything he had into his company, saying that he took an average salary of around USD51,000 from Ozy in its final years, has triple-mortgaged his home and drives a 15-year-old car.

-- Courtesy of Borneo Bulletin