Source: Fortune.com
Summary
Film producer Jason Cloth, 60, was indicted on wire fraud charges for allegedly running a $100 million Ponzi scheme. He is accused of soliciting money from investors for film and video game projects, but using the funds for other purposes, including a Canadian real estate development and paying off earlier investors. Cloth has been named in several lawsuits and has faced allegations of financial misdeeds in the past.
Our Reading
The numbers tell one story. Jason Cloth’s alleged Ponzi scheme involved over $100 million. He used his company, Creative Wealth Media Finance Corp., to solicit funds from investors. He’s charged with seven counts of wire fraud, each punishable by up to 20 years in prison. The FBI is asking potential victims to come forward. Cloth’s past is marked by lawsuits and allegations of financial wrongdoing. He’s been accused of diverting funds in an Ontario Securities Commission enforcement proceeding.
The indictment reveals a familiar story of alleged financial misdeeds in the entertainment industry.
Author: Evan Null
