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Hollywood Producer Indicted For $100 Million Ponzi Scheme
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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.