SEC Drops Carlos Watson Fraud Case After Trump Axed Prison Term

The US Securities and Exchange Commission is dropping its fraud case against Carlos Watson Jr., the co-founder of now-defunct Ozy Media Inc. who was spared by President Donald Trump from an almost 10-year prison term after he was convicted of lying to investors in the digital startup.

The regulator moved Thursday to dismiss civil claims against Watson, who gained notoriety after he directed his co-founder to impersonate a YouTube executive on a call with bankers at Goldman Sachs Group Inc. The SEC is also seeking approval from a federal judge in Brooklyn, New York, to drop claims against Ozy ...