A federal grand jury indicted a Hollywood producer with connections to blockbusters such as “Joker” and “Ghostbusters: Afterlife” on wire fraud charges.
Prosecutors called it a $100 million Ponzi scheme.
Jason Cloth was arrested in Los Angeles on Tuesday, the same day the indictment against him was unsealed in U.S. District Court in Chicago, The Associated Press reported.
Prosecutors said Cloth asked for investments, claiming the money would be used for films or video games but instead used it for Canadian real estate development or to pay off other investors, according to the AP.
It is alleged that he got more than $100 million from one investment advisor, their clients and others, and that Cloth lied about the value of the investments.
Prosecutors said Cloth knew when the investments came in that he would not use them for what he said they were for, KABC reported.
Cloth faces seven counts of wire fraud, with each count carrying a maximum of 20 years in prison if convicted.
He’s also being asked to forfeit more than $12 million.
Cloth is also being sued in several other lawsuits from investors, including one class-action in Chicago and another in Florida, where an investor said his company breached contracts for several entertainment loans.
The Ontario Securities Commission filed similar allegations against Cloth to those he faces in Illinois, the AP reported. The commission said Cloth raised more than $500 million for film and television projects but diverted $70 million to other projects, including paying previous investors. That case is ongoing.
Cloth’s IMDb profile lists him as a producer on films such as “The Ministry of Ungentlemanly Warfare,” “House of Gucci,” and “Ghostbusters: Afterlife,” among dozens of others dating back to 2014. He is connected to several upcoming television projects, including an untitled Nicki Minaj show.