Decision in brief: Ontario Securities Commission v Cloth, Enforcement Proceeding, Merits, November 2, 2026

In this enforcement case, the OSC alleges that Jason Cloth and his company Creative Wealth Media Finance Corp. defrauded investors who gave them money to fund film and television projects. The OSC says they used investors’ money for purposes other than those promised and, in some cases, raised more money than they told investors was needed.

The Tribunal decided Cloth and Creative Wealth committed fraud. They acted dishonestly by:

• using over $50 million of investors’ money for real estate development and construction companies instead of the film and television projects promised;
• using investors’ money to fund different film and television projects than the projects promised;
• using investors’ money to repay earlier investors instead of funding the projects promised; and
• raising more money for projects than they told investors that they needed.

The Tribunal found that this conduct exposed investors to risks they had not agreed to take and investors suffered substantial losses.

Cloth directed the transactions, knew how the money was being used and understood that his actions could put investors’ money at risk.

Creative Wealth was also responsible because Cloth controlled the company and carried out the fraud through it.

Because the Tribunal found Cloth committed fraud, it did not decide that he was also responsible, as a director and officer, for Creative Wealth’s fraud.

The Tribunal will hold a hearing to decide what sanctions and costs should be ordered against Cloth and Creative Wealth.