BEVERLY HILLS, CA — A film producer and financier has been accused of defrauding investors of more than $100 million through purported film, entertainment and gaming projects, federal prosecutors announced.
Jason Cloth, 60, of Beverly Hills, was charged with seven counts of wire fraud in an indictment unsealed Tuesday in federal court in Chicago, according to the U.S. Attorney's Office.
Cloth was arrested Tuesday in Los Angeles and made his initial appearance in federal court there, prosecutors said.
Cloth is credited on IMDb as a producer or executive producer on dozens of films, including prominent titles such as "Joker," "House of Gucci," "Licorice Pizza," and "Ghostbusters: Afterlife."
According to the indictment obtained by Patch, Cloth operated Canada-based Creative Wealth Media Finance Corp. and solicited investments from clients between 2019 and 2026.
Those clients included an Illinois investment adviser whose money was purportedly intended for film and entertainment projects or a gaming entertainment investment platform, prosecutors said. Authorities have not said which specific projects Cloth offered as investment opportunities to clients.
Cloth obtained more than $100 million from the adviser, the adviser's clients and other investors by making false claims about the value and performance of their investments, prosecutors claim.
Prosecutors allege Cloth knew he would use the money for other purposes, including the development of a Canadian real estate project.
The indictment also accuses Cloth of operating a Ponzi scheme by using money from newer investors to repay earlier investors.
Federal prosecutors are seeking the forfeiture of at least $12.25 million connected to projects identified in the indictment.
Each wire fraud count carries a maximum sentence of 20 years in federal prison. Cloth is presumed innocent unless proven guilty beyond a reasonable doubt.
The FBI is asking anyone who believes they were victimized through Creative Wealth Media Finance Corp. or another entity connected to Cloth to submit information here.
The schemes may have involved film and entertainment projects, gaming investment platforms or other ventures, according to federal authorities.
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