NewsUS NewsHollywood, California NewsJason Cloth is accused of defrauding investors out of more than $100 million by using false promises to lure them into funding film projects and a gaming platform23:03, 29 Jul 2026A Hollywood film producer behind the Oscar-winning hit Joker is accused of masterminding a Ponzi scheme that defrauded clients out of more than $100 million (£75 million).‌Jason Cloth, 60, is accused of using his Canadian company, Creative Wealth Media Finance Corp, to lure investors into backing film projects and a gaming platform with false promises about the value and performance of their investments.‌Federal prosecutors allege the scheme ran from 2019 until this year, with Cloth fraudulently obtaining more than $100 million from an Illinois-based investment adviser, the adviser's clients and other investors.‌It is claimed the operation worked as a Ponzi scheme, with money from newer investors allegedly being used to repay earlier ones, according to the US Attorney Office for the Northern District of Illinois.Prosecutors also alleged some of the cash was diverted towards other ventures, including a real estate development in Canada.‌Cloth, of Beverly Hills, has been charged with seven counts of wire fraud in Chicago, authorities said on Wednesday. He was arrested Tuesday and made his initial court appearance in Los Angeles.If convicted, he could face up to 20 years behind bars on each count. Prosecutors are also seeking the forfeiture of at least $12.25 million (£9.2 million).The arrest comes two years after Cloth was ordered to pay $19.6 million in a separate civil fraud case in Florida, according to Variety.‌He failed to appear for the trial, where a jury found he had defrauded an investor in The Pathway - a TNT documentary series about the NDA draft - out of $6.6 million.The jury also awarded an extra $13 million in punitive damages.Alongside Joker, starring Joaquin Phoenix, IMDb credits Cloth as a producer on several other major films, including Babylon, Longlegs, Ghostbusters: Afterlife and The Ministry of Ungentlemanly Warfare.Article continues belowIn addition to his work on Joker, Cloth has also been involved in films such as Longlegs, Babylon, and Ghostbusters: Afterlife.Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌NBAJoaquin PhoenixGhostbustersHollywood, California News