Film producer accused of defrauding clients out of over $100 million, running Ponzi scheme

A federal grand jury in Chicago has indicted a film producer on charges that he defrauded clients out of more than $100 million.

The U.S. Attorney's office said Jason Cloth, 60, of Beverly Hills, California, solicited clients to invest in purported film and entertainment products in a Ponzi scheme.

Cloth was arrested in Los Angeles on Tuesday, the same day the indictment against him was unsealed. He was charged with seven counts of wire fraud, and made his initial court appearance in U.S. District Court on Tuesday in Los Angeles.

Federal prosecutors said Cloth operated Canada-based Creative Wealth Media Finance Corp. from 2019 to 2026, and solicited numerous clients — including an investment adviser in Illinois — to invest in purported film and entertainment projects or fund an entertainment investment platform.

Cloth fraudulently obtained more than $100 million from that Illinois investment adviser, as well as the adviser's clients and other investors, prosecutors said. He misrepresented the value of the clients' investments, which he knew would be used for other purposes such as the development of a real estate project in Canada.

Cloth is also accused of using investor funds to repay past investors — a Ponzi scheme.

Each count of wire fraud against Cloth is punishable by up to 20 years in prison. Cloth is also being asked to forfeit at least $12.25 million.

Anyone who believes they may have been a victim of Cloth's alleged wire fraud scheme is asked to fill out a form at the FBI Chicago Field Office website.