Canadian film financier Jason Cloth is facing fraud charges in Illinois, where he’s accused of bilking clients out of more than $100 million.
He was indicted by a federal grand jury and arrested in Los Angeles on Tuesday.
The U.S. Attorney’s Office in the northern district of Illinois alleges Cloth defrauded an Illinois investment adviser and his clients out of millions, encouraging them to invest in film and entertainment projects.
Prosecutors allege he used that money for other purposes, including to pay back earlier investors.
Cloth, who is credited as an executive producer on films including “A Simple Favor,” “Joker” and “House of Gucci,” faces seven counts of wire fraud.
Cloth could not be reached for comment.
Cloth and his defunct Toronto-based company Creative Wealth Media Finance Corp., are also facing legal action closer to home.
The Ontario Securities Commission alleges he diverted at least $70 million in investor money for unauthorized purposes.
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