A federal grand jury has indicted Beverly Hills resident Jason Cloth, the executive producer behind the billion-dollar-grossing "Joker" and more than 70 other films, on seven counts of wire fraud in what prosecutors call a $100 million-plus Ponzi scheme.

Cloth, 60, was arrested Wednesday, July 29, in Los Angeles and appeared in U.S. District Court in downtown L.A. the same day, according to the LA Times, citing the Department of Justice. FBI spokesperson Laura Eimiller confirmed he was released on $200,000 bail.

The 12-page indictment, filed July 23 in U.S. District Court for the Northern District of Illinois and unsealed Wednesday, alleges Cloth and his Toronto-based Creative Wealth Media Finance Corp. defrauded an Illinois investment adviser, the adviser's clients, and other investors from approximately April 2019 through June 2026. Prosecutors say Cloth made false representations about the performance and value of investments he solicited for purported film projects and a gaming entertainment platform.

Instead of funding those projects, the indictment alleges, Cloth diverted investor money to develop a real estate project in Canada and for personal purposes. Prosecutors also allege he ran a classic Ponzi structure, using new investor funds to repay earlier ones, and falsely told investors their money was inaccessible because a production company had gone bankrupt.

Each wire fraud count carries up to 20 years in prison. The government is seeking forfeiture of at least $12.25 million.

A prolific financier

Cloth's credits span some of Hollywood's biggest recent titles: "Joker," "Longlegs," "Babylon," "Judas and the Black Messiah," "Ghostbusters: Afterlife," and "The Addams Family." In 2019, he committed more than $750 million to films and TV series through a joint venture with Bron Creative, and Variety at the time called him "one of the biggest private financiers" in the industry, the LA Times reported.

Creative Wealth Media was the primary financier of Bron Studios, which filed for bankruptcy and closed in 2023.

The federal charges cap years of civil litigation. Cloth is a defendant in a 2024 class action in Cook County, Illinois, where Chicago-area investors allege he owes them $180 million in the same scheme. Plaintiffs' attorneys in that case say the fraud allowed Cloth to accumulate film credits and maintain a "lavish lifestyle," according to the Chicago Sun-Times.

In 2021, investor Hudson Private sued Cloth, Creative Wealth, and Bron Studios in the Southern District of New York, alleging misappropriation of at least $14.3 million in film loans tied to "Bombshell," "Capone," "The Survivor," and "Greyhound."

Separately, the Ontario Securities Commission launched enforcement proceedings in 2025, alleging Cloth and Creative Wealth raised more than $500 million from over 500 investors between 2013 and 2022 and diverted at least $70 million. Oral arguments in that case before Canada's Capital Markets Tribunal are scheduled for Tuesday, August 4.

What's next

Court records do not show whether Cloth has retained a criminal defense attorney. The case was announced jointly by U.S. Attorney Andrew Boutros of the Northern District of Illinois, the FBI's Chicago Field Office, and the SEC. The FBI is asking anyone who believes they were victimized to file a report at fbi.gov/jasonclothvictims.