A federal grand jury in Chicago has charged the Hollywood producer Jason Cloth with seven counts of wire fraud for allegedly defrauding investors of $100m, according to federal authorities.
Cloth, who has credits on the blockbuster 2019 film Joker and critically acclaimed hits like The Green Knight, told investors their funds would go toward a motion picture and a gaming entertainment investment platform, among other media-related projects, according to an indictment unsealed on Tuesday in the US district court for the northern district of Illinois.
Instead, the grand jury found, Cloth diverted the money toward his personal life, including the development of a real estate project in Canada.
Cloth told some investors their funds were inaccessible due to the bankruptcy of a production company, which according to the indictment was a false claim. He also allegedly ran a Ponzi scheme, using funds from investors to pay back his previous investors.
Cloth’s alleged scheme lasted from 2019 to 2026.
If Cloth is convicted of the charges, he will have to forfeit at least $12.25m and could face a hefty prison sentence. Each count of wire fraud carries a maximum of 20 years behind bars.
Cloth has also been embroiled in civil litigation over allegations of fraud. A Florida jury ordered him to pay $19.6m to an investor on The Pathway, a TNT docuseries about the NBA draft, Variety reported in 2024.
“He’s made a career of telling people whatever they want to hear in order to get what he wants,” said David Jonelis, the attorney who represented the investor at the time, according to Variety.
