Film Financier Jason Cloth Faces Federal Wire Fraud Charges in Alleged $100M Ponzi Scheme

Jason Cloth, a film financier behind major productions including “Joker” and “Ghostbusters: Afterlife,” was indicted Tuesday by federal prosecutors in Chicago on wire fraud charges stemming from an alleged $100 million Ponzi scheme. The 60-year-old was arrested in Los Angeles the same day the indictment was unsealed in U.S. District Court for the Northern District of Illinois, according to the U.S. Attorney’s Office.

Federal prosecutors allege that Cloth solicited millions from investors under the pretense that their money would finance films or fund a video game platform. Instead, according to court documents, he diverted funds toward unrelated projects including Canadian real estate development and used investor money to repay earlier participants in the scheme.

Operating through the Canada-based Creative Wealth Media Finance Corp. beginning in 2019, Cloth allegedly obtained more than $100 million from an Illinois investment adviser, the adviser’s clients and additional investors while 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.

This federal action represents the latest chapter in a series of financial misconduct allegations against Cloth. He has been named in multiple civil lawsuits filed by investors in recent years, including a class-action case in Chicago alleging film-funding fraud and separate lawsuits in Florida and New York. Additionally, Canada’s Ontario Securities Commission launched enforcement proceedings against Cloth and his company last year, alleging they raised more than $500 million from investors for film and television projects while diverting $70 million to other uses.

The FBI’s Chicago office is seeking information from potential victims and has established an online form for individuals who believe they may have been defrauded.