Beverly Hills producer Jason Cloth is accused of defrauding investors through purported film, entertainment and gaming ventures, with prosecutors alleging a Ponzi-style scheme that diverted more than $100 million.
CHICAGO — A federal grand jury in Chicago has indicted a Beverly Hills, California, film producer on allegations he defrauded investors of more than $100 million by soliciting investments in purported film, entertainment and gaming projects, officials announced Wednesday.
Jason Cloth, 60, was charged with seven counts of wire fraud in an indictment unsealed Tuesday in U.S. District Court in Chicago. He was arrested Tuesday in Los Angeles and made his initial court appearance in federal court there.
Quick Facts
- Defendant: Jason Cloth, 60, of Beverly Hills, California
- Charges: Seven counts of wire fraud
- Alleged fraud: More than $100 million
- Scheme period: 2019–2026
- Business involved: Creative Wealth Media Finance Corp.
- Alleged victims: Illinois investment adviser, clients and other investors
- Alleged misuse of funds: Film projects, gaming investments and a Canadian real estate development
- Additional allegation: Ponzi-style scheme using new investor money to repay earlier investors
- Forfeiture sought: At least $12.25 million
- Maximum penalty: Up to 20 years in prison per wire fraud count
- Victim reporting: FBI seeking potential victims through an online reporting form.
According to the indictment, Cloth operated Canada-based Creative Wealth Media Finance Corp. From 2019 through 2026, he allegedly persuaded investors, including an Illinois investment adviser and the adviser’s clients, to invest in purported film and entertainment projects or a gaming investment platform.
Prosecutors allege Cloth fraudulently obtained more than $100 million by making false representations about the value and performance of the investments. Instead of using the money as promised, prosecutors say he diverted investor funds for other purposes, including developing a real estate project in Canada.
The indictment also alleges Cloth operated a Ponzi-style scheme by using money from new investors to repay earlier investors. Prosecutors are seeking forfeiture of at least $12.25 million tied to projects identified in the indictment.
The case was announced by U.S. Attorney Andrew S. Boutros for the Northern District of Illinois and Ryan Whalen, acting special agent in charge of the FBI’s Chicago Field Office. The U.S. Securities and Exchange Commission assisted in the investigation.
If convicted, Cloth faces up to 20 years in prison on each wire fraud count.
Federal authorities are asking anyone who believes they may have been a victim of the alleged fraud involving Creative Wealth Media Finance Corp. or other entities associated with Cloth to contact the FBI through its online victim reporting form.
Cloth is presumed innocent unless and until proven guilty in court.
Quick Facts
- Defendant: Jason Cloth, 60, of Beverly Hills, California
- Charges: Seven counts of wire fraud
- Alleged fraud: More than $100 million
- Scheme period: 2019–2026
- Business involved: Creative Wealth Media Finance Corp.
- Alleged victims: Illinois investment adviser, clients and other investors
- Alleged misuse of funds: Film projects, gaming investments and a Canadian real estate development
- Additional allegation: Ponzi-style scheme using new investor money to repay earlier investors
- Forfeiture sought: At least $12.25 million
- Maximum penalty: Up to 20 years in prison per wire fraud count
- Victim reporting: FBI seeking potential victims through an online reporting form