Hollywood producer Jason Cloth has been charged with seven counts of wire fraud by a federal grand jury in Chicago. Federal authorities state that Cloth allegedly defrauded investors of $100m.
According to an indictment unsealed on Tuesday in the US district court for the northern district of Illinois, Cloth, who has credits on films such as 2019's Joker and The Green Knight, told investors their money would be used for a motion picture, a gaming entertainment investment platform, and other media-related projects.
However, the grand jury found that Cloth allegedly diverted these funds towards his personal life, including the development of a real estate project in Canada. He also allegedly told some investors their funds were inaccessible due to a production company's bankruptcy, a claim the indictment states was false. Cloth is also accused of running a Ponzi scheme, using new investor funds to pay earlier investors.
The alleged scheme is said to have occurred between 2019 and 2026. If convicted, Cloth faces a forfeiture of at least $12.25m and a potential prison sentence, with each wire fraud count carrying a maximum of 20 years.