Add The California Post on Google Jason Cloth, a high-profile Hollywood financier and executive producer whose company Creative Wealth Media backed major box-office hits such as “Joker,” has been arrested in LA following a federal grand jury indictment unsealed in US District Court in Chicago.
Cloth, 60, faces seven counts of wire fraud for allegedly orchestrating a massive, yearslong financial scheme that defrauded investors and advisory firms out of more than $100 million.
Federal prosecutors allege Cloth solicited high-dollar investments under the guise of funding movie, television and gaming entertainment projects.
Instead of using the capital as promised, Cloth allegedly fabricated financial representations regarding the performance and true value of the investments.
Behind the scenes, prosecutors say Cloth engaged in classic Ponzi scheme tactics by funneling fresh investor money to pay off prior investors to keep the illusion alive.
Millions of dollars were diverted into unauthorized personal ventures, including the development of a real estate project in Canada.
The indictment seeks a forfeiture of at least $12.25 million, and each wire fraud count carries a maximum penalty of up to 20 years in federal prison.
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