Film financier indicted in alleged fraud scheme and more

Hollywood financier charged in alleged $100 million film-funding fraud

Film financier Jason Cloth, whose credits include “Joker” and “Ghostbusters: Afterlife,” was indicted in U.S. federal court for allegedly orchestrating a long-running investment fraud scheme. Prosecutors claim that between 2019 and 2026 Cloth raised more than $100 million from investors by misleading them about how their money would fund film projects and a gaming venture. He’s accused of diverting much of the capital to unrelated projects, including a Canadian real estate development. Authorities also allege that Cloth used some funds from newer investors to repay earlier investors, a hallmark of a Ponzi-style operation.

Cloth faces seven counts of wire fraud. Each charge carries a potential maximum prison sentence of 20 years. Federal prosecutors are also seeking forfeiture of more than $12 million connected to the alleged scheme.