Film financier Jason Cloth charged with $100 million fraud
Jason Cloth, a 60‑year‑old film producer and founder of Toronto‑based Creative Wealth Media Finance Corp, was arrested in Los Angeles and indicted on seven counts of wire fraud by a U.S. federal grand jury. Prosecutors allege he solicited investors, including an Illinois investment adviser and the adviser’s clients, to fund purported film, entertainment and gaming projects, fraudulently obtaining more than $100 million. Cloth is accused of using the money for personal purposes, notably a real‑estate development in Canada, and of operating a Ponzi‑style scheme that repaid earlier investors with new funds. The indictment seeks forfeiture of at least $12.25 million, and each count carries a possible 20‑year prison term. Victims have been urged to contact the FBI. In Canada, the Ontario Securities Commission has separately alleged that Cloth diverted at least $70 million of investor money for unauthorized uses.
The case highlights cross‑border financial misconduct involving the entertainment financing sector and raises concerns for investors in film‑related ventures.
Entities: Creative Wealth Media Finance Corp · Illinois investment adviser · Jason Cloth · Ontario Securities Commission · U.S. Department of Justice
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The Ontario Securities Commission alleges Cloth diverted at least $70 million for unauthorized purposes. (Canadian Press)
- [● 3 SOURCES] Cloth used investor money for personal purposes, including a real‑estate project in Canada. (multiple sources)
- [● 4 SOURCES] The alleged scheme defrauded investors of more than $100 million. (multiple sources)
- [● 3 SOURCES] Cloth misrepresented investment opportunities in film, entertainment and a gaming platform. (multiple sources)
- [● 4 SOURCES] Jason Cloth was indicted on seven counts of wire fraud in U.S. federal court. (multiple sources)
- [● 3 SOURCES] Cloth operated a Ponzi‑style scheme that used new investor funds to repay earlier investors. (multiple sources)
- [● 2 SOURCES] Each wire‑fraud count carries a maximum penalty of 20 years in prison. (multiple sources)
- [● 2 SOURCES] Prosecutors seek forfeiture of at least $12.25 million from Cloth. (multiple sources)