Jason Cloth, a Beverly Hills-based film financier whose executive producer credits include blockbuster films like “Joker” and “Longlegs,” was arrested Tuesday and indicted on federal charges alleging he orchestrated a massive Ponzi scheme that bilked investors out of more than $100 million.
A federal grand jury in Chicago indicted the 60-year-old on seven counts of wire fraud. According to prosecutors, Cloth operated the Toronto-based Creative Wealth Media Finance Corp., which he used to solicit investors from 2019 to 2026 with promises that their money would fund film and entertainment projects or a gaming entertainment investment platform. Instead, authorities say, he diverted more than $100 million from those investors to pay off earlier investors and develop a real estate project in Canada.
The indictment alleges that Cloth knowingly deceived investors about how their funds would be used and falsely represented the performance and value of their investments. Prosecutors contend he operated a textbook Ponzi scheme, using money from newer investors to repay earlier ones in order to maintain the illusion that the initial investments were sound.
A significant portion of the fraudulent funds came from an Illinois investment adviser and its clients. Authorities say Cloth made false representations about the value and performance of their investments, while knowing full well he intended to use the money for other purposes, including the Canadian real estate development.
Cloth’s alleged scheme unfolded over years despite multiple legal challenges. In 2024, a Florida jury found he had defrauded an investor out of $6.6 million in connection with a TNT docuseries called “The Pathway” about the NBA draft. That verdict totaled $19.6 million after accounting for additional damages. Cloth did not appear at that trial, claiming he was scheduled to be at the Cannes Film Festival. The verdict was upheld on appeal last year.
His problems mounted further that same year when he stepped down from his position as co-head of C2 Motion Picture Group amid mounting fraud allegations. His financing company, Creative Wealth Media, declared bankruptcy in 2023. Since 2021, Cloth and his former company have been named in at least four lawsuits accusing them of shuffling investments between various entities to repay outstanding debts.
According to an ongoing class action lawsuit filed in Cook County, Cloth owes Chicago-area investors $180 million in connection with the same alleged Ponzi scheme. One Chicago attorney representing victims said Cloth’s core sales pitch centered on his success with “Joker,” a billion-dollar-grossing film, though the attorney alleged Cloth had grossly oversold the opportunity and failed to deliver promised returns.
Cloth’s producing credits span decades of major Hollywood productions. Beyond “Joker” and “Longlegs,” he is credited as executive producer on films including “Babylon,” “Ghostbusters: Afterlife,” “House of Gucci,” “Licorice Pizza,” “The Addams Family,” “Judas and the Black Messiah,” “Bombshell,” and “The Birth of a Nation,” among many others. Creative Wealth Media served as the primary financier for Bron Studios, a Canadian production company that garnered 30 Oscar nominations and six wins before filing for bankruptcy in 2023.
Each count of wire fraud carries a maximum prison sentence of up to 20 years. The indictment seeks forfeiture of at least $12.25 million. Cloth was arrested in Los Angeles and made his initial court appearance there Tuesday.
Federal prosecutors from the U.S. Attorney’s Office for the Northern District of Illinois announced the indictment along with the FBI’s Chicago Field Office and the U.S. Securities and Exchange Commission, which assisted in the investigation. The FBI is actively seeking to identify additional victims of Cloth’s alleged fraud scheme and has established a reporting form at fbi.gov/jasonclothvictims for anyone who believes they may have been defrauded.