Canadian film financier Jason Cloth has been charged in the United States with seven counts of wire fraud for allegedly defrauding investors of more than US$100 million through a scheme tied to film and entertainment investments.

The 60-year-old was indicted by a federal grand jury in Illinois and arrested in Los Angeles on July 28. Prosecutors allege Cloth raised money through his Toronto-based company, Creative Wealth Media Finance Corp., between 2019 and 2026.

According to the indictment, investors were told their funds would finance specific film projects and a gaming entertainment platform. Prosecutors allege the money was instead diverted to other purposes, including a Canadian real estate development and personal expenses.

Cloth, whose film credits include Joker and A Simple Favor, was released on US$200,000 bail. He is also facing proceedings in Ontario, where the Ontario Securities Commission alleges that at least $70 million in investor funds was used for unauthorized purposes.

The allegations have not been proven in court.

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Originally published on Canadian Fraud News.