SEC v. Ozy Media, Inc.; Samir Rao; Suzee Han; and Carlos R. Watson, Jr., No. LR-25670, Eastern District of New York (Mar. 17, 2023) — Press Release
raw: Ozy Media, Inc. et al.
Ozy Media, Inc. et al., No. LR-25670 (E.D.N.Y. Mar. 17, 2023)
summary
Former Ozy Media executives Samir Rao and Suzee Han entered consent judgments after being charged in a $50 million scheme to defraud investors through financial misrepresentations.
paragraph
The SEC obtained judgments against Samir Rao and Suzee Han for their roles in defrauding Ozy Media investors of approximately $50 million. The defendants allegedly inflated annual revenues by at least 100 percent and used deceptive tactics, including Rao impersonating a YouTube executive. Rao is barred from serving as an officer or director of a public company for ten years, with civil penalties to be determined later.
narrative
The U.S. District Court for the Eastern District of New York entered judgments by consent against former Ozy Media executives Samir Rao and Suzee Han. Between 2019 and 2021, the defendants allegedly raised about $50 million from investors using false financial information that inflated annual revenues by at least 100 percent. The scheme included a ruse where Rao impersonated a YouTube executive to fabricate claims of licensing revenue. As part of the settlement, Rao and Han are enjoined from violating antifraud provisions of the Securities Act and Exchange Act. Additionally, Rao is barred from serving as an officer or director of a public company for ten years. While civil monetary penalties are still to be determined, the SEC's litigation against Ozy Media and CEO Carlos R. Watson, Jr. remains ongoing.
Classified accounting-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Parties
Securities and Exchange CommissionOzy Media, Inc.Samir RaoSuzee HanCarlos R. Watson, Jr.
Keywords
ozymediaraoagainstwatsonsec'sinchanagainst formersecurities exchangeprospective investorjudgmentsformersecuritiesinvestors
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $50.00M $50 Million $10M–$100M
- $50.00M $50 million $10M–$100M
Entities 3
- person samir rao
- agency Securities and Exchange Commission
- person suzee han
Triples 8
- Securities And Exchange Commission obtained judgments against Samir Rao and Suzee Han for fraud in a $50 million scheme
- Securities And Exchange Commission filed complaint against Ozy Media, Inc., Carlos R. Watson, Jr., Samir Rao, and Suzee Han for misrepresenting financial condition
- Carlos R. Watson, Jr. raised money approximately $50 million from investors through false financial claims
- Samir Rao impersonated an executive from YouTube to falsely claim licensing revenue
- Carlos R. Watson, Jr. attributed Samir Rao's impersonation to a mental health crisis
- Samir Rao consented to judgment barring him from serving as officer or director of public company for ten years
- Suzee Han consented to judgment enjoining violations of antifraud provisions under Securities Act and Exchange Act
- Securities And Exchange Commission is leading litigation against Ozy Media and Carlos R. Watson, Jr. through Karolina Klyuchnikova and Christine D. Ely
PDF (from attached: complaint)
Text layers
Extracted body text (2,296c)
SEC Obtains Judgments and Bar Against Former Ozy Media Executives Charged in $50 Million Dollar Fraud Litigation Release No. 25670 / March 17, 2023 Securities and Exchange Commission v. Ozy Media, Inc. et al., No. 23-cv-01424 (E.D.N.Y. filed February 23, 2023) On March 14, 2023, the U.S. District Court for the Eastern District of New York entered judgments by consent against the former COO of Ozy Media, Inc., Samir Rao, and its former Chief of Staff, Suzee Han, for their roles in defrauding investors of Ozy Media, a media and entertainment company founded by Carlos R. Watson, Jr., the company's CEO. The SEC's complaint, filed on February 23, 2023, alleged that from approximately January 1, 2019 to September 30, 2021, Watson, Rao, and Han raised about $50 million from investors through repeated misrepresentations concerning Ozy Media's basic financial condition, business relationships, and fundraising efforts. The defendants allegedly routinely and purposely presented prospective investors with false financial information that grossly inflated Ozy Media's annual revenue by at least 100 percent. The SEC's complaint further alleged that Watson and Rao orchestrated a scheme in which Rao impersonated an executive from YouTube in an effort to support Ozy Media's false claims to a prospective investor that the company was receiving licensing revenue from YouTube when it was not. According to the SEC's complaint, when the prospective investor discovered the ruse, Watson falsely attributed Rao's impersonation to Rao suffering from a "mental health crisis." Rao and Han have consented to the entry of judgments enjoining each from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment entered against Rao additionally bars him from serving as an officer and director of a public company for ten years. Civil monetary penalties against Rao and Han are to be determined at a later date by the Court. The SEC's ongoing litigation against Ozy Media and Watson is being led by Karolina Klyuchnikova and Christine D. Ely, and is being supervised by Alison R. Levine, Lee A. Greenwood, and Sheldon L. Pollock of the SEC's New York Regional Office. SEC Complaint
OCR text (2,296c · html-text · 99% conf)
SEC Obtains Judgments and Bar Against Former Ozy Media Executives Charged in $50 Million Dollar Fraud Litigation Release No. 25670 / March 17, 2023 Securities and Exchange Commission v. Ozy Media, Inc. et al., No. 23-cv-01424 (E.D.N.Y. filed February 23, 2023) On March 14, 2023, the U.S. District Court for the Eastern District of New York entered judgments by consent against the former COO of Ozy Media, Inc., Samir Rao, and its former Chief of Staff, Suzee Han, for their roles in defrauding investors of Ozy Media, a media and entertainment company founded by Carlos R. Watson, Jr., the company's CEO. The SEC's complaint, filed on February 23, 2023, alleged that from approximately January 1, 2019 to September 30, 2021, Watson, Rao, and Han raised about $50 million from investors through repeated misrepresentations concerning Ozy Media's basic financial condition, business relationships, and fundraising efforts. The defendants allegedly routinely and purposely presented prospective investors with false financial information that grossly inflated Ozy Media's annual revenue by at least 100 percent. The SEC's complaint further alleged that Watson and Rao orchestrated a scheme in which Rao impersonated an executive from YouTube in an effort to support Ozy Media's false claims to a prospective investor that the company was receiving licensing revenue from YouTube when it was not. According to the SEC's complaint, when the prospective investor discovered the ruse, Watson falsely attributed Rao's impersonation to Rao suffering from a "mental health crisis." Rao and Han have consented to the entry of judgments enjoining each from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment entered against Rao additionally bars him from serving as an officer and director of a public company for ten years. Civil monetary penalties against Rao and Han are to be determined at a later date by the Court. The SEC's ongoing litigation against Ozy Media and Watson is being led by Karolina Klyuchnikova and Christine D. Ely, and is being supervised by Alison R. Levine, Lee A. Greenwood, and Sheldon L. Pollock of the SEC's New York Regional Office. SEC Complaint