Canadian film financier Jason Cloth is facing seven counts of wire fraud in Illinois, where he stands accused of swindling clients out of over $100 million in what prosecutors have labeled a potential Ponzi scheme. The 60-year-old Hollywood producer, known for his work on films like “Joker” and “A Simple Favor,” was indicted by a federal grand jury and taken into custody in Los Angeles by the U.S. Attorney’s Office for the Northern District of Illinois.
According to FBI spokesperson Laura Eimiller, Cloth was released on $200,000 bail after his arrest on Tuesday. The indictment alleges that between 2019 and 2026, Cloth gathered funds from investors through his Toronto-based company, Creative Wealth Media Finance Corp., under false pretenses. It states that Cloth deceptively obtained more than $100 million from various victims, including an investment adviser, their clients, and other investors, by misrepresenting the performance and value of the investments.
Cloth was unreachable for comment on Wednesday. The indictment claims that Cloth assured investors their funds would support specific film projects and a gaming entertainment investment platform but diverted the money for different purposes, such as a real estate endeavor in Canada and personal use.
Apart from the U.S. legal issues, Cloth is also entangled in legal troubles in Ontario. The Ontario Securities Commission has accused him of redirecting at least $70 million in investor funds for unauthorized reasons. OSC spokesperson Curtis Lindsay mentioned that the commission refrains from discussing ongoing cases at the Capital Markets Tribunal but confirmed that evidentiary proceedings concluded on May 28, with written submissions submitted on July 21.
Oral submissions on the evidence and laws are scheduled for August 4, alongside addressing any tribunal queries. The commission’s claim asserts that Cloth and his company lent over $50 million to a real estate development company in Kingston, Ontario, using funds meant for media projects without a formal agreement. The majority of this loan remained unpaid as of late 2023, according to the document filed in February 2025.
Lindsay noted that he does not foresee Cloth’s U.S. arrest impacting the tribunal proceedings.