A prominent figure in Hollywood known for producing the acclaimed film Joker is facing allegations of orchestrating a fraudulent scheme that deceived investors out of over $100 million. Jason Cloth, aged 60, is accused of utilizing his Canadian company, Creative Wealth Media Finance Corp, to entice investors into supporting film projects and a gaming platform with misleading assurances regarding the profitability of their investments.
According to federal prosecutors, the purported scheme operated from 2019 until present, during which Cloth allegedly acquired more than $100 million through deceitful means from an investment adviser based in Illinois, the adviser’s clients, and other investors. The prosecutors claim that the operation functioned as a Ponzi scheme, where funds from new investors were supposedly used to repay earlier investors.
Additionally, prosecutors assert that a portion of the funds was diverted to fund other ventures, including a real estate 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, with a potential sentence of up to 20 years for each count if convicted. Prosecutors are also seeking the forfeiture of at least $12.25 million.
This arrest follows a previous civil fraud case in Florida where Cloth was ordered to pay $19.6 million. He was found guilty of defrauding an investor in a documentary series called The Pathway, with the jury awarding an extra $13 million in punitive damages.
Apart from his involvement in Joker, which starred Joaquin Phoenix, Cloth has producing credits in various other notable films, including Babylon, Longlegs, Ghostbusters: Afterlife, and The Ministry of Ungentlemanly Warfare. His filmography also includes contributions to Longlegs, Babylon, and Ghostbusters: Afterlife.
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