Beverly Hills Financier Charged with Wire Fraud in $100 Million Scheme
Jason Cloth faces seven counts, with allegations of a Ponzi scheme and diverted funds for a Canadian real estate project.
Image: Eddie Pollard / AI
Callum Smith
Jason Cloth, 60, of Beverly Hills, has been charged with seven counts of wire fraud in Chicago, following his arrest on Tuesday and an initial court appearance in Los Angeles.
Prosecutors claim Michael Cloth operated Creative Wealth Media Finance Corp., a Canadian-based entity, using it to solicit clients from 2019 to 2026.
These solicitations targeted an investment advisor in Illinois and others, urging them to invest in purported film and entertainment ventures or to fund a gaming entertainment platform.
Federal prosecutors allege Cloth fraudulently obtained over $100 million from the Illinois investment advisor, their clients, and other investors.
He achieved this through false representations regarding the performance and value of their investments.
The U.S. Attorney Office for the Northern District of Illinois claims the operation functioned as a Ponzi scheme.
Money from newer investors allegedly repaid earlier ones, sustaining the fraudulent cycle.
Federal Grand Jury claims further allege Cloth diverted investor money toward his personal life.
This included a real estate project in Canada, siphoning funds from legitimate investment channels.
Prosecutors also claim some cash was diverted towards other ventures, including a separate real estate development in Canada.
Cloth told some investors their funds were inaccessible due to a production company's bankruptcy; this claim was later found false.
A jury in a Florida civil fraud case previously found Cloth defrauded an investor on "The Pathway," a TNT docuseries about the NBA draft, out of $6.6 million.
Florida Civil Court indicated that That civil judgment also awarded $13 million in punitive damages against Cloth.
That civil judgment also awarded $13 million in punitive damages against Cloth.
Cloth holds credits on notable films such as Joker (2019) and The Green Knight.
The alleged scheme, which federal grand jury claims indicate lasted from 2019 to 2026, involved a complex financial landscape within the entertainment and investment sectors.
Legal proceedings are expected to further unravel the specifics of the alleged fraud.
These proceedings will contrast the civil judgment with the broader federal allegations of a systematic Ponzi scheme and fund diversion.