Additional Coverage:
- Film financier Jason Cloth indicted in alleged $100M Ponzi scheme tied to movie funding (apnews.com)
Film producer Jason Cloth, known for backing high-profile movies such as “Joker” and “Ghostbusters: Afterlife,” has been indicted on federal wire fraud charges tied to an alleged $100 million Ponzi scheme.
The indictment, unsealed Tuesday in the U.S. District Court in Chicago, accuses the 60-year-old producer of soliciting investments under the pretense of funding films and a video game platform. Prosecutors say instead the money was diverted to unrelated ventures, including a Canadian real estate project, and used to pay returns to earlier investors.
Cloth was arrested in Los Angeles the same day and made his initial court appearance. Details about his legal representation in the criminal case have not been disclosed, and attorneys linked to him in other civil lawsuits have yet to comment.
According to the indictment, Cloth operated a Canadian company named Creative Wealth Media Finance Corp. Beginning in 2019, he allegedly raised over $100 million from an Illinois investment adviser, that adviser’s clients, and others by misrepresenting the value of their investments. He faces seven counts of wire fraud, each carrying a potential 20-year prison sentence, and prosecutors are seeking forfeiture of more than $12 million.
The FBI is urging anyone who may have been victimized to contact their Chicago office.
This is not Cloth’s first encounter with legal troubles related to financial misconduct. He has been named in multiple investor lawsuits across several states, including a class-action in Chicago and breach of contract claims in Florida. Some cases remain unresolved, while others have been dismissed.
In addition, the Ontario Securities Commission initiated enforcement actions last year against Cloth and his company, alleging they raised over $500 million for entertainment projects but misappropriated $70 million for other purposes, such as repaying earlier investors. That matter is still ongoing.
The developments add to growing scrutiny of financial practices within the film financing sector as authorities continue investigations.