Mr Watson 'directed a scheme to defraud investors' of millions of dollars, federal prosecutors claim.
The founder of the scandal-plagued US start-up Ozy Media has been arrested on federal fraud charges.
Federal prosecutors allege Mr Watson "directed a scheme to defraud investors" of millions of dollars. Sharon Osborne, the wife of rock star Ozzy Osbourne, has accused Mr Watson of falsely claiming the couple had invested in the business, telling CNBC in 2021, "this guy is the biggest shyster I have ever seen in my life".
Ozy Media's downfall began after New York Times reporting revealed Rao had impersonated a YouTube executive during a call with Goldman Sachs, touting YouTube's successful relationship with Ozy as the bank was considering making an investment.Mr Watson blamed the deception on what he described as Rao's mental health issues. He added that no harm was caused because Goldman Sachs did not ultimately decide to invest.
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