Canadian film financier, Jason Cloth, faces charges of wire fraud in Illinois, where he is accused of defrauding clients of over $100 million in what prosecutors describe as 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 taken into custody in Los Angeles by the U.S. Attorney’s Office, Northern District of Illinois.
According to FBI spokesperson Laura Eimiller, Cloth was released on $200,000 bail following his arrest. The indictment alleges that between 2019 and 2026, Cloth obtained funds from investors through his Toronto-based company, Creative Wealth Media Finance Corp., under false pretenses.
Cloth purportedly misled investors about the performance and value of investments, raising over $100 million by making deceptive claims. The indictment states that Cloth diverted the funds for personal use and real estate development in Canada while misrepresenting that the money would be allocated to film projects and a gaming entertainment investment platform.
In addition to the charges in the U.S., Cloth is also facing legal action from the Ontario Securities Commission, which alleges that he misappropriated at least $70 million from investors for unauthorized purposes. The Commission’s claim asserts that Cloth used investor funds meant for media projects to lend money to a real estate development company without a formal agreement.
The Ontario Securities Commission has completed its evidentiary phase and filed written submissions, with oral proceedings scheduled for August 4 to address the evidence and relevant legal matters. The commission’s statement of claim highlights the lack of repayment on the substantial loan provided to the real estate developer in Kingston, Ontario.
Despite Cloth’s arrest in the U.S., the OSC spokesperson, Curtis Lindsay, stated that it is unlikely to impact the ongoing legal proceedings in Canada.