Film producer Jason Cloth, who has executive producer credits on titles including “Joker” and “Babylon,” is indicted by federal prosecutors in connection with an alleged Ponzi scheme involving more than $100 million. Cloth, 60, is accused of running a fraudulent investment operation and misleading investors about the use of their money. According to prosecutors, he operated through a Canada-based entity, Creative Wealth Media Finance Corp, and solicited investors as part of a scheme that, in the government’s account, does not produce the promised returns.
Sources report that the charges center on allegations that Cloth lied to investors and diverted funds that were purportedly intended for film and television projects to other uses. One described alleged mechanism is the repayment of earlier investors with money raised from later investors, which prosecutors characterize as Ponzi conduct.
Cloth faces multiple federal fraud counts, including wire-fraud-related charges. If convicted, prosecutors seek lengthy prison sentences. The indictment details the government’s claims, and no outcome has been reported.
