A prominent figure in Hollywood’s film industry responsible for the acclaimed movie Joker is facing allegations of orchestrating a Ponzi scheme that swindled clients out of over $100 million (£75 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 fraudulent scheme occurred from 2019 until recently, during which Cloth illicitly acquired more than $100 million 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 allegedly used to reimburse previous ones, as per the US Attorney Office for the Northern District of Illinois.
Additionally, prosecutors allege that some of the funds were diverted to other projects, including a real estate development in Canada.
Cloth, residing in Beverly Hills, has been charged with seven counts of wire fraud in Chicago, with authorities confirming his arrest on Tuesday and subsequent appearance in court in Los Angeles.
If found guilty, he could potentially face up to 20 years in prison for each count, and prosecutors are also seeking the forfeiture of at least $12.25 million (£9.2 million).
This arrest follows a previous civil fraud case in Florida where Cloth was ordered to pay $19.6 million; however, he failed to appear for the trial. The jury in that case concluded that he had deceived an investor in The Pathway, a TNT documentary series, out of $6.6 million, and awarded an additional $13 million in punitive damages.
Apart from his involvement in Joker, featuring Joaquin Phoenix, Cloth’s producer credits extend to various significant films like Babylon, Longlegs, Ghostbusters: Afterlife, and The Ministry of Ungentlemanly Warfare.
In addition to his contributions to Joker, Cloth has also played a role in films such as Longlegs, Babylon, and Ghostbusters: Afterlife.
