NEW YORK—The founder of the troubled digital start-up Ozy Media pleaded not guilty Thursday to federal fraud charges accusing him of scheming to prop up his financially struggling company, which hemorrhaged millions of dollars before it shut down amid revelations of possibly deceptive business practices.
Federal agents arrested Carlos Watson at a Manhattan hotel earlier in the day 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 prosecutors say impersonated a YouTube executive during a pitch to Goldman Sachs, a potential investor.
The indictment unsealed Thursday in U.S. District Court in Brooklyn accuses Watson and Ozy Media of conspiring to commit securities fraud and wire fraud. Watson was also charged with identity theft for his role in the impersonation of several media executives….