A Canadian film producer has been arrested and charged with seven counts of wire fraud after allegedly engaging in a Ponzi scheme by using US$100 million in investor funds to repay prior investors.
According to an indictment unsealed by the U.S. Attorney’s Office in the Northern District of Illinois, from 2019 to 2026, 60-year-old Jason Cloth of Beverly Hills, Calif., solicited various clients to invest in film and entertainment projects.
“Cloth fraudulently obtained more than $100 million from (an) Illinois investment advisor, the advisor’s clients, and other investors based on false representations about the performance and value of their investments,” a press release said on Wednesday.
“Cloth knew at the time of the investments that he would use the money for other purposes, including the development of a real estate project in Canada,” the release added.
Cloth, who operates the Canadian-based Creative Wealth Media Finance Corp., was arrested Tuesday in Los Angeles where he made an initial court appearance, according to the release.
Prosecutors are seeking at least $12.25 million from Cloth for the projects identified in the indictment.
This is a developing story. More details to come…
