Jason Cloth Resigns from C2 Motion Picture Group Amid Fraud Allegations

Financial Turmoil Hits Prominent Film Financier Jason Cloth.

by Nouman Rasool
Jason Cloth Resigns from C2 Motion Picture Group Amid Fraud Allegations
© Michael Loccisano/Getty Images

Jason Cloth, a prominent Canadian financier known for his executive producer credits on films like "Joker" and "Licorice Pizza," has stepped down as co-head of C2 Motion Picture Group. The announcement follows allegations of fraud related to several film projects.

The news comes shortly after a Florida jury ruled that Cloth defrauded an investor out of millions of dollars for the production of movies, including "Ghostbusters: Afterlife" and "NBA docuseries The Pathway." Cloth was ordered to pay approximately $19.6 million, having chosen not to mount a defense during the trial.

Since 2021, Cloth and his former financing company, Creative Wealth Media, have faced multiple lawsuits alleging fraudulent activities. Two of these lawsuits have been voluntarily dismissed. Dave Caplan, who co-founded C2 with Cloth in 2022, has now taken over as the sole CEO.

C2 has been involved in co-financing major studio movies, including "Mission: Impossible - Dead Reckoning" and "Transformers: Rise of the Beasts." In a statement, Cloth framed the leadership change this way: "This move simply reflects what the reality on the ground has been for several months.

I know C2 could not be in better hands." Caplan told them he remained committed to the future of the company and indicated that Cloth was the founder of C2.

Bron Studios Bankruptcy

Creative Wealth was the largest shareholder of Bron Studios, the company that last year declared bankruptcy with $148 million in assets and an almost $420 million debt.

Creative Wealth was granted the majority of Bron's remaining assets in bankruptcy proceedings. Cloth attributed his financial troubles to Bron's collapse, which he described as a significant shock impacting many individuals.

The $19.6 million verdict against Cloth stemmed from accusations that he failed to repay $6 million in loans from Robert Harris' Florida-based investment companies. The lawsuit claimed Cloth made false assurances about the repayment and the profitability of various projects.

In March, a class action lawsuit was filed in Illinois state court, accusing Cloth of defrauding investors out of more than $80 million. The suit alleges that Cloth raised funds for several movie and TV titles, promising repayment based on their success.

Despite significant box office earnings, such as the $205 million grossed by "Ghostbusters: Afterlife," investors were not repaid. Cloth's lawyer, William Fried, announced plans to appeal the Florida verdict, citing significant errors made by the court.

Meanwhile, the proposed class action claims that investors will not be fully compensated due to Creative Wealth's bankruptcy. Bron Studios, which spanned film, TV, animation, and gaming, was involved in high-profile projects under a $100 million deal with Warner Bros.

Pictures. Bron and Creative Wealth have faced several lawsuits over unpaid loans for various films, with a recent judgment against Creative Wealth amounting to nearly $27 million. As Cloth navigates these legal battles, the future of C2 Motion Picture Group and its projects remains a focal point for industry observers and investors alike.