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‘Joker’ & ‘Longlegs’ Producer Jason Cloth Charged In $100M Ponzi Scheme
Jason Cloth, a Beverly Hills-based film producer known for movies including Joker, Longlegs and Babylon, has been charged with federal fraud offences over an alleged Ponzi scheme that defrauded investors of more than $100 million. Prosecutors say the scheme, run through his Canada-based company Creative Wealth Media Finance Corp, involved soliciting money for supposed film and entertainment projects and a gaming investment platform, while secretly diverting funds elsewhere and using new investors' money to pay off earlier ones.
According to a 12-page indictment filed in Chicago, Cloth, 60, obtained the funds from an Illinois investment adviser, that adviser's clients and other investors through false claims about the value and performance of their investments, with some money allegedly funnelled into a Canadian real estate project. He was arrested and made an initial court appearance in Los Angeles, and now faces seven counts of wire fraud, each carrying a maximum sentence of 20 years in prison; prosecutors are also seeking forfeiture of at least $12.25 million. Cloth has built up numerous producing credits over the past 12 years, including The Birth of a Nation, The Addams Family films, Judas and the Black Messiah and Ghostbusters: Afterlife.
In short
- Producer Jason Cloth charged over alleged $100m Ponzi scheme
- Faces seven wire fraud counts, each carrying up to 20 years
- Prosecutors seek forfeiture of at least $12.25 million
Explained simply
A Ponzi scheme is a fraudulent investment where money from new investors is used to pay returns to earlier investors, creating a false appearance of profit. Jason Cloth, a film producer based in Beverly Hills, has been accused of running such a scheme through his Canada-based company, allegedly defrauding investors of more than $100 million. Prosecutors say he solicited money for supposed film and entertainment projects but secretly diverted funds elsewhere, including to a Canadian real estate venture.
Cloth has produced major Hollywood films over the past 12 years, including Joker, Babylon and Ghostbusters: Afterlife. He faces seven counts of wire fraud, each carrying a maximum 20-year prison sentence, and prosecutors are seeking to recover at least $12.25 million.
The case highlights the risks in entertainment financing, where the complexity of film deals and the credentials of established producers can make fraudulent schemes harder to detect. Both individual investors and those advised by professional financial advisers fell victim to the alleged scheme, demonstrating how large sums can be lost across a wide investor base.