Film Producer Jason Cloth Indicted in $100M Ponzi Scheme

Jason Cloth, a film producer recognized for his work on "Joker" and "Ghostbusters: Afterlife," has been charged with wire fraud by a federal grand jury in connection with an alleged Ponzi scheme amounting to $100 million. The indictment was revealed on Tuesday in U.S. District Court in Chicago, coinciding with Cloth's arrest in Los Angeles. Prosecutors claim that Cloth solicited investments for film and video game ventures but diverted the funds to a Canadian real estate project and to repay previous investors. He managed Creative Wealth Media Finance Corp., a Canadian firm, and reportedly misled investors about the worth of their contributions, raising over $100 million from an Illinois investment adviser and others. Cloth faces seven wire fraud charges, each carrying a potential 20-year prison sentence, and is required to forfeit over $12 million. The FBI is urging any potential victims to reach out to its Chicago office. Previously, Cloth has been involved in a class-action lawsuit in Chicago, faced a breach of contract suit in Florida, and was subject to an enforcement action by the Ontario Securities Commission for allegedly misappropriating $70 million from more than $500 million raised.