Canadian Film Financier Jason Cloth Faces Fraud Charges in U.S.

Jason Cloth, a prominent Canadian film financier known for his involvement in major productions like "Joker" and "Ghostbusters: Afterlife," has been indicted by a federal grand jury on charges of wire fraud. The indictment alleges that Cloth orchestrated a $100 million Ponzi scheme, misleading investors into believing their funds were allocated to film and video game projects. Instead, he is accused of diverting the money to personal ventures, including Canadian real estate developments, and using it to repay earlier investors. Cloth, 60, was arrested in Los Angeles and faces seven counts of wire fraud, each carrying up to 20 years in prison. Additionally, he may be required to forfeit over $12 million. The FBI is urging potential victims to come forward. In Canada, Cloth's firm, Creative Wealth Media Finance Corp., is under scrutiny by the Ontario Securities Commission for allegedly misusing $70 million of the $500 million raised from investors. Cloth has also faced related civil lawsuits in several U.S. states, some of which are still ongoing.