Film financier Jason Cloth indicted on $100M+ fraud in U.S., faces Ontario probe
Canadian producer credited on Joker and House of Gucci arrested in Los Angeles after being accused of bilking clients in Illinois. Ontario Securities Commission investigating separate $70M diversion.
Sources · local media reports
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Canadian film financier Jason Cloth is facing seven counts of wire fraud in Illinois after a federal grand jury indicted him on accusations he bilked clients out of more than $100 million. He was arrested in Los Angeles on Tuesday.
The U.S. Attorney's Office in the northern district of Illinois alleges Cloth defrauded an Illinois investment adviser and his clients by encouraging them to invest in film and entertainment projects, then used that money for other purposes, including to pay back earlier investors — a structure prosecutors describe as a Ponzi scheme.
Cloth has credits as an executive producer on major films including A Simple Favor, Joker, and House of Gucci. He could not be reached for comment.
The legal trouble extends beyond the U.S. His defunct Toronto-based company, Creative Wealth Media Finance Corp., is also under investigation by the Ontario Securities Commission, which alleges he diverted at least $70 million in investor money for unauthorized purposes.
By the numbers
How much did Jason Cloth allegedly defraud clients out of in Illinois?
More than $100 million. Federal prosecutors in Illinois's northern district allege that Jason Cloth defrauded an investment adviser and his clients by soliciting investments in film and entertainment projects, then using the funds for other purposes, including repaying earlier investors.
How much did Ontario Securities Commission say Jason Cloth diverted from his company?
At least $70 million. The Ontario Securities Commission is investigating Jason Cloth's defunct Toronto-based company, Creative Wealth Media Finance Corp., over the diversion of investor money for unauthorized purposes.
