Business · Companies · 5 hrs ago
Ontario tribunal finds Jason Cloth and company defrauded investors
Ontario’s Capital Markets Tribunal found that Jason Cloth and his company committed securities fraud by misusing money from investors.
Cloth, a Toronto film financier and executive producer, ran Creative Wealth Media Finance, which arranged investor-funded loans for film and television productions.
The tribunal found that $53.8 million was diverted to real estate projects, and that money raised for some media projects was used for others.
It also found that funds were used to repay earlier investors and that Cloth sometimes raised more than agreements allowed.
Creative Wealth collapsed and entered bankruptcy proceedings in October, while a separate US wire-fraud case remains unproven in court.
The tribunal will hold a hearing on costs and sanctions against Cloth and the company no later than November 30.
Ontario’s Capital Markets Tribunal found that film financier Jason Cloth and his company, Creative Wealth Media Finance Corp., defrauded investors by misusing their funds.
The tribunal found that $53.8-million raised for other purposes was diverted to real estate projects.
It also found that Cloth used funds raised for some media projects to finance others and to repay earlier investors.
A hearing on costs and sanctions is to be held no later than Nov. 30.
- Who
- Jason Cloth and his now-defunct company, Creative Wealth Media Finance Corp.
- What
- Ontario’s Capital Markets Tribunal found they perpetrated securities fraud by misappropriating investors’ funds.
- When
- The tribunal issued its decision on Nov. 3, 2026.
- Where
- Ontario, Canada.
- Why
- The tribunal found that investors’ money was diverted to real estate projects, other media projects and repayments to earlier investors.
This story does not have two clearly opposing sides.
Cloth used money raised for specific media projects to fund other media projects, the tribunal found.
Cloth was arrested in the United States on seven counts of wire fraud, according to the U.S. Attorney’s Office for the Northern District of Illinois.
Creative Wealth entered bankruptcy proceedings.
The tribunal issued its decision finding Cloth and Creative Wealth had perpetrated securities fraud.
The tribunal is to hold a hearing on costs and sanctions.
- Diverted funds
- $53.8-million
- Company
- Creative Wealth Media Finance Corp.
- Film credits
- Joker and House of Gucci
- Series E financing
- Approximately US$7.9-million raised; at least $4.19-million went to repay earlier investors
- Upcoming hearing
- Costs and sanctions hearing to be held no later than Nov. 30
What people are saying
Cloth was well aware of what he was doing
I fully understand that some of the things that went on were not right, but at the time of evaluating what my options were, in my mind, it was the better option.