Canadian film financier Jason Cloth indicted on $100M fraud

Canadian film financier Jason Cloth, whose executive producer credits include major Hollywood releases such as "Joker" and "Ghostbusters Afterlife," was arrested in Los Angeles on Tuesday, July 28, 2026, and indicted on federal wire fraud charges. A grand jury in Chicago alleges he operated a Ponzi scheme that defrauded investors out of more than $100 million.

Cloth, 60, faces seven counts of wire fraud, each punishable by up to 20 years in prison. The indictment, unsealed Tuesday, alleges that from April 2019 through June 2026, Cloth solicited funds from clients, including an Illinois investment adviser and the adviser's clients, by promising to invest the money in film, entertainment projects, and a gaming platform. Prosecutors claim he instead diverted the money for other purposes, including a real estate development project in Canada and to repay earlier investors in a Ponzi-like fashion.

The indictment further accuses Cloth of falsely inflating the value of investors' holdings and misleading them by claiming their funds were inaccessible due to a production company's bankruptcy. The U.S. Attorney's Office for the Northern District of Illinois is seeking a forfeiture of at...