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Producer Jason Cloth Indicted on Seven Wire Fraud Counts Over Alleged $100 Million Scheme

The criminal case moves the matter beyond prior civil rulings by charging Cloth with a Ponzi-style fraud and enabling asset forfeiture and victim outreach

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Jason Cloth, founder and chief executive officer of Creative Wealth Media, stands for a photograph at his office in Toronto, Ontario, Canada, on Sept. 7, 2019. Photographer: Della Rollins/Bloomberg via Getty Images
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Overview

  • A federal grand jury in Chicago unsealed a 12-page indictment charging Jason Cloth with seven counts of wire fraud and seeking at least $12.25 million in forfeiture after an investigation into investments tied to his Canada-based Creative Wealth Media Finance Corp.
  • Prosecutors say Cloth, who was arrested in Los Angeles and made an initial court appearance there, solicited more than $100 million from an Illinois investment adviser, that adviser’s clients, and other investors between 2019 and 2026.
  • The indictment alleges Cloth diverted investor funds to other uses, including a Canadian real estate project, and used new investor money to repay earlier investors, conduct federal prosecutors describe as Ponzi-style tactics.
  • Each wire fraud count carries a statutory maximum sentence of up to 20 years in prison and the FBI’s Chicago Field Office is asking anyone who believes they were a victim to submit information through its online form.
  • The criminal charges build on earlier civil judgments, investor lawsuits and a 2023 bankruptcy for Creative Wealth, after which regulators including the Ontario Securities Commission alleged large-scale diversion of investor money and investors have continued to seek recovery.