An investor in the Joaquin Phoenix-starring blockbuster “Joker” is facing federal charges in Chicago for allegedly running a Ponzi scheme that conned clients of more than $100 million by persuading them to invest in purported entertainment projects, officials announced Wednesday.
Jason Cloth, 60, of Beverly Hills, was charged with seven counts of wire fraud in an indictment unsealed Tuesday in U.S. District Court in Chicago. Cloth was arrested Tuesday and later made his initial court appearance in Los Angeles.
According to the indictment, Cloth operated Canadian-based Creative Wealth Media Finance Corp. 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, according to the U.S. Attorney Office for the Northern District of Illinois.
Cloth allegedly 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.
The defendant is accused of planning to use the money for other purposes, including the development of a real estate project in Canada.
Federal prosecutors contend Cloth ran 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.
Each count of wire fraud is punishable by up to 20 years in federal prison, prosecutors noted.
Two years ago, Cloth was hit with a $19.6 million verdict after failing to appear at a fraud trial in West Palm Beach, Florida, Variety reported.
A seven-member jury found that Cloth defrauded an investor on “The Pathway,” a TNT docuseries about the NBA draft, out of $6.6 million. The jury also awarded $13 million in punitive damages, it was reported.