Home / Crime and Justice / Film Producer Jason Cloth Faces $100M Ponzi Scheme Charges
Film Producer Jason Cloth Faces $100M Ponzi Scheme Charges
29 Jul
Summary
- Film producer Jason Cloth arrested for alleged $100 million Ponzi scheme.
- He defrauded investors with false representations about film projects.
- Cloth faces decades in prison if convicted on fraud charges.
Jason Cloth, a film producer with notable credits including Joker and Longlegs, has been arrested and faces federal fraud charges. He is accused of operating a Ponzi scheme that defrauded investors of over $100 million.
Cloth, 60, allegedly ran Canada-based Creative Wealth Media Finance Corp. Prosecutors claim he solicited investments for film projects and a gaming platform, making false representations about their value and performance. He was arrested Tuesday and made his initial court appearance in Los Angeles.
The indictment details how Cloth allegedly obtained more than $100 million from various investors. According to the U.S. Attorney's Office for the Northern District of Illinois, he knew at the time of investment that funds would be diverted to other ventures, such as a Canadian real estate project.
Furthermore, the indictment alleges that Cloth used investor funds to repay earlier investors, a hallmark of a Ponzi scheme. Prosecutors are seeking forfeiture of at least $12.25 million related to the projects. Cloth faces seven wire fraud counts, with each carrying a potential sentence of up to 20 years in federal prison.
