Film financier Jason Cloth indicted on seven wire-fraud counts in alleged $100 million scheme
Veteran producer Jason Cloth was arrested in Los Angeles after a Chicago grand jury charged him with seven counts of wire fraud tied to a purported $100 million Ponzi-type operation involving film and gaming investments.
Jason Cloth, a 60-year-old film financier known for executive-producer credits on titles such as “Joker,” “Babylon” and “Ghostbusters: Afterlife,” was arrested in Los Angeles on Tuesday following a Chicago indictment that accuses him of running a $100 million Ponzi scheme. The indictment alleges Cloth misled investors about the use of their funds, diverting money earmarked for a film project and a gaming platform to repay investors in a Canadian real-estate venture.
According to the U.S. Attorney’s Office, Cloth faces seven wire-fraud counts, each carrying a statutory maximum of 20 years in prison, and the indictment seeks restitution of $12.25 million. The FBI’s Chicago field office is also looking for additional victims.
Investors have previously sued Cloth, claiming he absconded with their capital. One Chicago lawsuit alleges $80 million was taken for projects including “Ghostbusters: Afterlife” and “Monkey Man.” Attorney Alexander Loftus, who filed the suit, said, “The core Cloth sales pitch is that he invested in ‘Joker’ and that was a huge financial success. He didn’t tell them it was oversubscribed and stiffed the investors … Every time, he uses the new thing to pay off the first thing.”
Cloth’s firm, Creative Wealth Media Finance, filed for bankruptcy in Canada in 2023. The Ontario Securities Commission reported that Cloth raised roughly $500 million from about 500 investors across North America over the past decade, allegedly diverting funds beyond the scope of the film and TV projects for which they were solicited. The regulator noted that the company made $50 million in unsecured loans to a developer for condominium construction in Kingston, Ontario, which remained unpaid at the time of bankruptcy.
In a separate civil case in West Palm Beach, Florida, a jury ordered Cloth to pay $19.6 million to an investor in a TV project; Cloth did not appear at the trial, citing an inability to represent himself and a planned attendance at the Cannes Film Festival. He later appealed the verdict, but the appellate court upheld it last year. Cloth’s civil counsel did not respond to requests for comment.
The indictment also includes a request for victims to be reimbursed, while prosecutors emphasize that each wire-fraud count carries a potential 20-year prison term.