A federal grand jury in New York indicted Jason Cloth on wire-fraud charges.
Why it matters: The case raises fresh risk for film investors, lenders and dealmakers who rely on production-finance claims to move money. It also adds criminal exposure to earlier civil and regulatory allegations in the entertainment-finance market.
- AP reported that a federal grand jury indicted film financier Jason Cloth on wire-fraud charges.
- Prosecutors allege Cloth told investors their money would fund films or a video-game platform.
- The alleged scheme is tied to about $100 million, according to AP.
- The Ontario Securities Commission alleged in 2024 that Cloth and Creative Wealth Media Finance Corp. raised more than $500 million from investors in Ontario, Canada, and the U.S.
A federal grand jury in New York has indicted film financier Jason Cloth on wire-fraud charges in an alleged $100 million scheme, according to AP. Prosecutors allege Cloth told investors their money would be used for film financing or a video-game platform.
The criminal case comes after earlier civil allegations. In a prior U.S. investor lawsuit, Cloth was accused of financing films through an alleged Ponzi scheme. A later court record described those allegations and said repeated representations about pending deals and financing were used to repay earlier loans. Those were allegations in civil litigation, not findings by the court.
Canadian regulators also alleged that Cloth and Creative Wealth Media Finance Corp. raised more than $500 million from investors in Ontario, Canada, and the U.S. while presenting themselves as film, television and animation lenders. The OSC notice sets out those allegations.
Cloth has been publicly associated with films including Joker, Ghostbusters: Afterlife and Babylon.
By the numbers
- $100 million - The alleged amount tied to the criminal case, according to AP.
- $500 million - The amount Ontario regulators said Cloth and Creative Wealth raised from investors.
- 2024 - The year the Ontario Securities Commission issued its fraud allegations.
Yes, but: The indictment is a charge, not a conviction. Earlier civil and regulatory claims remain allegations unless and until proven in court.
What's next: No hearing date or trial schedule was included in the dossier.