The indictment against Cloth, 60, was unsealed Tuesday in U.S. District Court in Chicago. The indictment alleges Cloth solicited money from investors, telling them the funds would be used for a film or a video game platform. Instead, the indictment alleges, he used the money for other projects like a Canadian real estate development and to pay off earlier investors. Several attorneys representing Cloth in lawsuits in Florida and California did not immediately respond to a request for comment. Last year the Ontario Securities Commission started an enforcement proceeding against Cloth and his company, bringing allegations that are similar to the Illinois indictment.