Canadian film financier Jason Cloth faces seven counts of wire fraud in Illinois, where he is alleged to have scammed clients of over $100 million in what authorities are calling a Ponzi scheme. The 60-year-old Hollywood producer, known for his work on films like “Joker” and “A Simple Favor,” was indicted by a federal grand jury and apprehended in Los Angeles. The U.S. Attorney’s Office in the Northern District of Illinois confirmed the arrest.
FBI spokesperson Laura Eimiller mentioned that Cloth was released on $200,000 bail following his arrest. The indictment claims that between 2019 and 2026, Cloth collected funds from investors through his Toronto-based company, Creative Wealth Media Finance Corp. The indictment alleges that Cloth deceived investors by misrepresenting the performance and value of investments, leading to the collection of over $100 million.
Cloth allegedly assured investors that their funds would support specific film projects and a gaming entertainment investment platform, but the indictment contends that Cloth diverted the money for personal use and a real estate project in Canada. Cloth was unreachable for comment via email.
Apart from the U.S. legal action, Cloth is also dealing with legal issues in Ontario. The Ontario Securities Commission has accused him of diverting at least $70 million of investor funds for unauthorized purposes. The commission’s case involves allegations of lending funds to a real estate development company without a written agreement, leading to significant outstanding debt by late 2023. The OSC expects Cloth’s U.S. arrest not to impact the ongoing tribunal proceedings.
The OSC did not provide further details about the active case but confirmed that the evidentiary portion concluded on May 28, with written submissions filed on July 21. Oral submissions on evidence and law are scheduled for August 4, addressing any queries from the tribunal.
