Canadian film financier Jason Cloth has been charged with seven counts of wire fraud in Illinois. He is accused of defrauding clients out of more than US$100 million in what the U.S. attorney's office describes as an alleged Ponzi scheme. Cloth, a 60-year-old Hollywood producer known for his work on films such as “Joker” and “A Simple Favor,” was indicted by a federal grand jury and arrested in Los Angeles on Tuesday.
According to the U.S. attorney's office for the northern district of Illinois, Cloth was released on US$200,000 bail following his arrest. The indictment reveals that he solicited and received funds from investors through his Toronto-based company, Creative Wealth Media Finance Corp., between 2019 and 2026. It states that at the core of the scheme, Cloth fraudulently solicited and obtained over $100 million from investors, which included an investment adviser, their clients, and other alleged victims, based on false representations concerning the investments' performance and value.
The indictment claims that Cloth misrepresented the purpose of the funds, informing investors that their money would be allocated to specific film projects as well as a "gaming entertainment investment platform." However, it is alleged that Cloth intended to use the funds for other purposes, including the development of a real estate project in Canada and for personal expenses.
Cloth, in pursuit of Oscar recognition through the financing and production of Hollywood films featuring well-known stars, is also facing legal challenges in Canada. The Ontario Securities Commission (OSC) has alleged that he diverted at least $70 million in investor money for unauthorized uses. An OSC spokesperson confirmed that they could not discuss active cases in the Capital Markets Tribunal but mentioned that an evidentiary phase concluded on May 28, with written submissions filed on July 21. Oral submissions regarding the evidence and relevant law are scheduled for August 4, during which any inquiries from the tribunal will be addressed.
The OSC's statement of claim alleges that Cloth and his company lent over $50 million to a real estate development firm intending to construct residential townhouses in Kingston, Ontario, using funds from investors who sought to finance media projects. Notably, the document claims there was no written agreement for these real estate loans. As of late 2023, the majority of the amount loaned to the Kingston Developer had not been repaid, according to the OSC's document, which was filed in February 2025. The OSC spokesperson, Curtis Lindsay, indicated that he does not expect Cloth’s arrest in the U.S. to impact the tribunal proceedings in Ontario.
