An investor behind multiple hit films including the critically acclaimed Joker has been arrested for allegedly masterminding a Ponzi scheme that swindled clients out of over $100 million.
Jason Cloth, 60, of Beverly Hills, has been charged with seven counts of wire fraud in Chicago, authorities announced Wednesday. He was arrested Tuesday and made his initial court appearance in Los Angeles.
According to the indictment against him, Cloth operated Creative Wealth Media Finance Corp., a Canadian-based entity. From 2019 to 2026, he allegedly solicited various clients, including an investment advisor in Illinois, to invest in purported film and entertainment ventures or to fund a gaming entertainment platform, as stated by the U.S. Attorney Office for the Northern District of Illinois.
Cloth is accused of fraudulently obtaining more than $100 million from the Illinois investment advisor, their clients, and other investors.
open image in galleryThese funds were allegedly secured through false representations regarding the performance and value of their investments. Prosecutors contend Cloth ran a Ponzi scheme, using some new investor money to repay earlier investors, and also planned to divert funds for other purposes, including a real estate project in Canada.
The indictment seeks forfeiture from Cloth in the amount of at least $12.25 million. Each count of wire fraud is punishable by up to 20 years in federal prison, prosecutors noted.
Two years ago, Cloth was hit with a $19.6 million verdict after failing to appear at a fraud trial in West Palm Beach, Florida, Variety reported.
A seven-member jury found that Cloth defrauded an investor on “The Pathway,” a TNT docuseries about the NBA draft, out of $6.6 million. The jury also awarded $13 million in punitive damages, it was reported.
In addition to Joker featuring Joaquin Phoenix, IMDb lists Cloth as a producer on several major films, including Babylon, Longlegs, Ghostbusters: Afterlife and The Ministry of Ungentlemanly Warfare.