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Canadian film financier Jason Cloth has been charged with seven counts of wire fraud in Illinois, where he’s accused of defrauding clients out of more than $100 million US in what prosecutors are describing as an alleged Ponzi scheme.
The 60-year-old Hollywood producer, whose credits include Joker and A Simple Favor, was indicted by a federal grand jury and arrested in Los Angeles on Tuesday, according to the U.S. Attorney’s Office, Northern District of Illinois.
FBI spokesperson Laura Eimiller said Wednesday that Cloth was released on $200,000 US bail Tuesday.
The indictment says Cloth solicited and received funds from investors through his Toronto-based company, Creative Wealth Media Finance Corp., between 2019 and 2026.
“It was part of the scheme that Cloth fraudulently solicited and obtained over $100 million” from alleged victims described as an investment adviser, their clients, as well as other investors, “based on false representations about the performance and value of the investments,” the indictment reads.
Cloth could not be reached for comment on Wednesday by email.
The indictment alleges Cloth told the investors that their money would go toward funding specific film projects, as well as a “gaming entertainment investment platform.”
“Cloth knew at the time of those investments that he would use it for other purposes, including the development of a real estate project in Canada and for other personal purposes,” the document alleges.
Legal action north of the border
Cloth, who chased Oscar glory through financing and producing Hollywood films with star names attached, is also facing legal action closer to home.
The Ontario Securities Commission alleges he diverted at least $70 million in investor money for unauthorized purposes.
OSC spokesperson Curtis Lindsay said Wednesday by email that the commission does not discuss active cases facing the Capital Markets Tribunal. However, he said an evidentiary portion wrapped May 28 and that the commission filed its written submissions July 21.
He said oral submissions about the evidence and law is scheduled for Aug. 4. That day will also address any questions that the tribunal may have.
The watchdog’s statement of claim alleges Cloth and his company lent “over $50 million to a real estate development company … to purportedly construct residential townhouses in Kingston, Ontario.” The document alleges Cloth got that money from investors who wanted to fund media projects.
The commission alleges there was no written agreement regarding these real estate loans.
“As of late 2023, the majority of the amount Creative Wealth loaned to the Kingston Developer had not been repaid,” reads the document, which was filed in February 2025.
Lindsay said he didn’t expect Cloth’s U.S. arrest to affect the tribunal proceedings.
