Jason Cloth, 60, of Beverly Hills, California, has been indicted by a federal grand jury in Chicago on seven counts of wire fraud after prosecutors allege he defrauded an Illinois investment advisor, the advisor’s clients, and other investors of more than $100 million through his Canadian company Creative Wealth Media Finance Corp. by soliciting investments in fake film and entertainment projects while secretly using the money for other purposes including a Canadian real estate project.

A Beverly Hills film producer who prosecutors say ran a seven year Ponzi scheme that defrauded an Illinois investment advisor and their clients of more than $100 million has been indicted on federal wire fraud charges in Chicago.

Jason Cloth, 60, was charged with seven counts of wire fraud in an indictment unsealed Tuesday in U.S. District Court in Chicago. Cloth was arrested Tuesday in Los Angeles and made his initial court appearance in U.S. District Court in Los Angeles.

The Scheme

According to the indictment Cloth operated Creative Wealth Media Finance Corp. a Canadian based company. From 2019 to 2026 Cloth solicited clients including an investment advisor in Illinois to invest in purported film and entertainment projects or to fund a gaming entertainment investment platform.

Cloth 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 according to prosecutors. Cloth knew at the time of the investments that he would use the money for other purposes including the development of a real estate project in Canada.

Cloth also allegedly engaged in a Ponzi scheme by using some investor funds to repay prior investors rather than investing them as promised.

To keep investors from withdrawing their money Cloth falsely told them their funds were inaccessible due to a production company’s bankruptcy when he knew that was not true according to the indictment.

The Indictment

The indictment contains seven counts of wire fraud each related to specific wire transfers from Illinois investor accounts to a Canadian bank account in the name of Creative Wealth Media Finance Corp. between December 2021 and February 2022. The transfers ranged from approximately $249,982 to $1,499,982 per transaction.

The indictment seeks forfeiture from Cloth in the amount of at least $12.25 million for the projects identified.

Each count of wire fraud is punishable by up to 20 years in federal prison.

Are You a Victim

If you believe you are a victim of Jason Cloth’s alleged fraud scheme whether committed through Creative Wealth Media Finance Corp. or any other entity contact the Chicago Field Office of the FBI by completing the short form at fbi.gov/jasonclothvictims. The schemes could involve purported film and entertainment projects gaming entertainment investment platforms or other conduct.

The indictment was announced by U.S. Attorney Andrew Boutros and FBI Acting Special Agent-in-Charge Ryan Whalen. The U.S. Securities and Exchange Commission provided valuable assistance. The government is represented by Assistant U.S. Attorneys Jared Hasten and Sean Hennessy.

An indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.