Justice Department and SEC Investigating Ozy Media (Report)

The nature of the investigations is not known, The New York Times reports

carlos watson
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Embattled media company Ozy Media is now facing two separate federal investigations, the New York Times reported Wednesday.

The Justice Department and the Securities and Exchange Commission have both opened investigations and the SEC has contacted multiple individuals, though the actual nature of those inquiries is not known at this time, according to the Times.

According to the New York Times, Ozy Media boss Carlos Watson informed investors about these investigations in October, telling them in a letter that he had hired the law firm Zuckerman Spaeder “to help us navigate the investigations.”

Ozy Media experienced a dramatic collapse in late September after a damning New York Times exposé detailed various misdeeds, including the accusation that Ozy inflated online traffic and video viewership, and an almost unbelievable account of a fundraising call with Goldman Sachs in which an Ozy executive — believed to be COO Samir Rao — impersonated a Google executive.

Within a week, the company lost the majority of senior management and investors, announced it was shutting down and was hit with a major lawsuit. Despite this, Watson has defiantly insisted the company will bounce back.