LOS ANGELES (KABC) -- A Hollywood movie producer was arrested this week after federal prosecutors in Illinois charged him with defrauding investors of more than $100 million in an alleged Ponzi scheme, authorities said Wednesday.
Jason Cloth, 60, a resident of Beverly Hills, was charged with seven counts of wire fraud in an indictment unsealed Tuesday in U.S. District Court in Chicago, the Justice Department said in a statement. Cloth was taken into custody in Los Angeles and made his first court appearance Tuesday in L.A., the statement said.
Cloth operated Canadian-based Creative Wealth Media Finance Corp., according to the indictment.
"From 2019 to 2026, Cloth solicited various clients, including an investment advisor in Illinois, to invest in purported film and entertainment projects or to fund a gaming entertainment investment platform," the DOJ said. "Cloth fraudulently obtained more than $100 million from the Illinois investment advisor, the advisor's clients, and other investors based on false representations about the performance and value of their investments, the indictment states."
Prosecutors contend that 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.
Cloth is listed on IMDb as a producer of films including "Joker" and "Ghostbusters: Afterlife." He is accused of engaging in a Ponzi scheme by using some investor funds to repay prior investors.
"The indictment seeks forfeiture from Cloth in the amount of at least $12.25 million for the projects identified in the indictment," the news release said.
Each count of wire fraud is punishable by up to 20 years in prison, according to the Justice Department.
Anyone who believes they are a victim of Cloth's alleged fraud scheme is urged to contact the FBI's Chicago Field Office by completing a form at fbi.gov/jasonclothvictims.
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