HOLLYWOOD PRODUCER CHARGED WITH $100M WIRE FRAUD SCHEME

A federal grand jury in Chicago has charged Hollywood producer Jason Cloth with seven counts of wire fraud for allegedly defrauding investors of more than $100 million. According to an indictment unsealed on Tuesday in the US District Court for the Northern District of Illinois, Cloth told investors their funds would be used for film and entertainment ventures and a gaming entertainment platform. Instead, the grand jury found, he diverted the money toward his personal life, including a real estate project in Canada. Cloth was arrested on Tuesday and made his initial court appearance in Los Angeles on Wednesday.

The alleged scheme operated between 2019 and 2026 through Creative Wealth Media Finance Corp., a Canadian-based entity. Cloth told some investors their funds were inaccessible due to a production company bankruptcy, which the indictment characterises as a false claim. Prosecutors allege he ran a Ponzi scheme, using funds from new investors to repay earlier investors. Cloth's film credits include Joker, The Green Knight, Babylon, Longlegs, Ghostbusters: Afterlife and The Ministry of Ungentlemanly Warfare.

Each count of wire fraud carries a maximum sentence of 20 years in federal prison. If convicted, Cloth faces forfeiture of at least $12.25 million. This case follows a 2024 civil verdict in West Palm Beach, Florida, where a jury ordered Cloth to pay $19.6 million to an investor on The Pathway, a TNT docuseries about the NBA draft, after finding he had defrauded the investor of $6.6 million and awarding $13 million in punitive damages.