The founder of the troubled digital start-up Ozy Media was arrested Thursday on fraud charges as part of 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.
The arrest of Carlos Watson at a Manhattan hotel came 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.
