Jason Cloth, a prominent Hollywood financier and executive producer whose company Creative Wealth Media backed films like "Joker," has been arrested in Los Angeles. A federal grand jury indictment, unsealed in U.S. District Court in Chicago, charges Cloth, 60, with seven counts of wire fraud.
Prosecutors allege that Cloth orchestrated a years-long financial scheme that defrauded investors and advisory firms of more than $100 million. He is accused of soliciting substantial investments under the pretense of funding movie, television, and gaming projects. Instead of allocating the capital as promised, Cloth allegedly fabricated financial statements concerning the performance and value of these investments.
According to federal prosecutors, Cloth employed tactics characteristic of a Ponzi scheme, using funds from new investors to repay earlier ones and maintain the illusion of a successful enterprise. The indictment further claims that millions of dollars were diverted to unauthorized personal ventures, including a real estate development in Canada.
The indictment seeks forfeiture of at least $12.25 million. Each wire fraud count carries a maximum penalty of up to 20 years in federal prison. Cloth was arrested on July 29.