Federal authorities arrest founder of media startup Ozy

NEW YORK (AP) — The founder of the troubled digital start-up Ozy Media has been arrested on fraud charges as part of a scheme to prop up the financially struggling company. Carlos Watson was to be arraigned in a federal court in Brooklyn Thursday afternoon. The company hemorrhaged millions of dollars before it shut down amid revelations of possibly deceptive business practices. The arrest came after two of the company’s top executives pleaded guilty this month to fraud charges. Ozy’s then-chief operating officer, Samir Rao, allegedly impersonated a YouTube executive during a pitch to Goldman Sachs, a potential investor. The guilty pleas and arrest were first reported by the Wall Street Journal.