Canadian film financier Jason Cloth is facing seven counts of wire fraud in Illinois for allegedly deceiving clients in excess of $100 million US in what authorities are labeling a Ponzi scheme. The 60-year-old Hollywood producer, known for projects like “Joker” and “A Simple Favor,” was indicted by a federal grand jury and taken into custody in Los Angeles on Tuesday, as per the U.S. Attorney’s Office, Northern District of Illinois. FBI spokesperson Laura Eimiller mentioned that Cloth was granted release on $200,000 US bail the following day.
According to the indictment, Cloth allegedly obtained funds from investors through his Toronto-headquartered firm, Creative Wealth Media Finance Corp., spanning the years 2019 to 2026. The document states that Cloth illicitly acquired over $100 million from victims, including an investment adviser, their clients, and other investors, by misrepresenting the performance and value of the investments.
Cloth is accused of assuring investors that their contributions would support specific film ventures and a “gaming entertainment investment platform.” However, the indictment claims that Cloth diverted the funds for alternate purposes, such as a real estate project in Canada and personal uses. Cloth could not be reached for comment via email.
In addition to the U.S. charges, Cloth is also confronting legal action in Canada. The Ontario Securities Commission alleges that he redirected at least $70 million in investor funds for unauthorized objectives. OSC spokesperson Curtis Lindsay mentioned that the commission refrains from discussing ongoing cases but confirmed that the evidentiary phase concluded on May 28, with written submissions filed on July 21. Oral arguments are scheduled for August 4, addressing both the evidence and legal aspects along with any queries from the tribunal.
The commission’s claim asserts that Cloth and his company lent over $50 million to a real estate firm for constructing residential townhouses in Kingston, Ontario, without a formal agreement. By late 2023, a significant portion of the loan remained outstanding, as per the document filed in February 2025. Lindsay expressed that Cloth’s arrest in the U.S. is not anticipated to impact the tribunal proceedings.