A Hollywood movie producer linked to the acclaimed film Joker is facing allegations of orchestrating a financial scam that deceived investors of over $100 million. Jason Cloth, aged 60, is accused of utilizing his Canadian firm, Creative Wealth Media Finance Corp, to entice investors into supporting film projects and a gaming platform by making false assurances about their investments’ value and performance.
According to federal prosecutors, the scheme operated from 2019 until recently, during which Cloth purportedly acquired more than $100 million from various investors, including an investment adviser based in Illinois. The prosecutors claim that the operation was structured as a Ponzi scheme, where money from new investors was allegedly utilized to repay earlier ones.
Additionally, prosecutors assert that a portion of the funds was diverted to other ventures, such as a real estate development project in Canada. Cloth, residing in Beverly Hills, has been charged with seven counts of wire fraud in Chicago and was arrested in Los Angeles, where he made his initial court appearance.
If found guilty, Cloth could potentially face a maximum of 20 years in prison for each count. Prosecutors are also seeking the forfeiture of a minimum of $12.25 million. This arrest follows a previous civil fraud case in Florida where Cloth was ordered to pay $19.6 million due to defrauding an investor in The Pathway, a documentary series, out of $6.6 million. The jury in that case also awarded an additional $13 million in punitive damages.
Aside from his involvement in the successful film Joker, Cloth’s producer credits extend to several other major films, including Babylon, Longlegs, Ghostbusters: Afterlife, and The Ministry of Ungentlemanly Warfare. Cloth’s contributions to the film industry also include works like Longlegs, Babylon, and Ghostbusters: Afterlife.
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