Canadian film financier Jason Cloth, an executive producer on titles including Joker, Licorice Pizza and House of Gucci, has been indicted in the United States over an alleged $100 million Ponzi-style fraud scheme. He was arrested on Tuesday in Los Angeles and now faces seven counts of wire fraud following an indictment unsealed in federal court in Chicago. The case marks a significant escalation in a series of fraud allegations that have dogged Cloth since 2021, culminating in criminal charges that could carry decades in prison.

Prosecutors allege that between 2019 and 2026, Cloth used his financing company Creative Wealth Media to solicit investments for films and other entertainment projects, securing more than $100 million from an Illinois investment advisor and its clients. That money was allegedly diverted for other purposes, including a Canadian real estate project, with some funds used to repay earlier investors. Creative Wealth, which declared bankruptcy in 2023, had also been the main financier behind Bron Studios, an Oscar-nominated production company that itself collapsed into bankruptcy amid separate fraud claims. Cloth faces up to 20 years in prison on each wire fraud count, and the indictment seeks forfeiture of at least $12.25 million.