Producer Jason Cloth Charged in 0 Million Ponzi Scheme Linked to ‘Joker’ and ‘Longlegs’

Jason Cloth, a prominent film producer known for his work on high-profile projects like Joker and Babylon, is facing serious legal troubles as he is charged with multiple counts of federal fraud. The allegations stem from a Ponzi scheme that reportedly defrauded investors of more than 0 million. Prosecutors have accused Cloth, 60, and his Toronto-based company, Creative Wealth Media Finance Corp., of soliciting investments for fictitious film and entertainment ventures, as well as a gaming entertainment platform.

On Tuesday, Cloth was taken into custody and made his first court appearance in Los Angeles later that day. The indictment, filed in U.S. District Court in Chicago, details how Cloth allegedly misled investors by making false representations regarding the performance and value of their investments. The U.S. Attorney’s Office for the Northern District of Illinois asserts that Cloth was aware that the invested funds would not be utilized for the intended entertainment projects but rather diverted towards a real estate development in Canada.

Compounding the allegations, the indictment indicates that Cloth engaged in a Ponzi scheme by using funds from new investors to pay off earlier ones. Prosecutors are pursuing the forfeiture of at least .25 million in connection with the defrauded projects. Cloth faces seven counts of wire fraud, each of which carries a potential sentence of up to 20 years in federal prison.

In the past dozen years, Cloth has accumulated an extensive portfolio of production credits, including major successes like Joker and Longlegs, as well as a diverse range of other films such as The Addams Family and Judas and the Black Messiah. Notably, he served as the primary financier for Bron Studios, which filed for bankruptcy in 2023. This financial debacle has led to several investor lawsuits, including one in 2021 in which Cloth and his company were accused of misappropriating funds related to several film projects.

Furthermore, Cloth faces separate regulatory challenges in Canada, where the Ontario Securities Commission has initiated enforcement proceedings against him. The commission alleges that between 2013 and 2022, Cloth and Creative Wealth Media raised over 0 million from more than 500 investors. However, they purportedly diverted a significant portion of these funds for unauthorized purposes, including repaying earlier investors and financing unrelated projects. As this legal saga continues to unfold, Cloth’s career in the film industry hangs in the balance.

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