business
Ontario Tribunal Finds Jason Cloth Defrauded Investors in Film Financing Scheme
Ontario tribunal finds Toronto film financier Jason Cloth committed securities fraud against investors
Key points
- The tribunal found Cloth and Creative Wealth diverted $53.8-million of investor funds to real estate projects.
- Of about US$7.9-million raised in a Series E round, at least $4.19-million went to repaying earlier investors in other projects.
- Cloth was arrested in the United States in July on seven counts of wire fraud, and those allegations have not been proven in court.
Why it matters. The ruling sets up a hearing on costs and sanctions no later than Nov. 30 for Cloth and Creative Wealth, which entered bankruptcy proceedings in October 2023.
Ontario's Capital Markets Tribunal ruled on Tuesday that Toronto film financier Jason Cloth and his defunct firm Creative Wealth Media Finance Corp committed securities fraud. The tribunal found Cloth diverted $53.8-million of investor funds to real estate projects and used new investor money to repay earlier backers. A hearing on costs and sanctions will be held no later than Nov. 30, the decision said.
Latest updates
Ontario Tribunal Finds Jason Cloth Defrauded Investors in Film Financing Scheme
Ontario's Capital Markets Tribunal has ruled that Toronto film financier Jason Cloth defrauded investors. Cloth, a producer on the films Joker and House of Gucci, and his now-defunct company were found to have misappropriated funds. The tribunal said $53.8 million was diverted to real estate projects. It also found that Cloth used money from new investors to repay earlier ones, and that he sometimes raised more than the maximum amounts set in investment agreements. The findings come from a tribunal proceeding rather than a criminal court. The tribunal's decision sets out the regulatory findings against Cloth and his company.