Rapper Jim Jones sucked the life blood out of a vampire flick ... and now the bitter investors have sued Jones claiming he lined his own pockets with the money that was supposed to be used for the movie.
Short story ... Jones was supposed to produce a movie called "Vampire Life III." He was also going to provide the soundtrack for the movie.
The investors plunked down $200,000 with high hopes ... hopes that were dashed when Jones stopped returning their phone calls and emails.
The investors were PISSED when they learned ... Jones allegedly used some of the money to make mix tapes that were supposed to go in the movie but Jones was releasing them independently.
The investors were doubly upset when they found out Jones allegedly used the rest of their seed money to produce and release a Vampire-Life clothing line that was supposed to be merchandising for the movie.
Bottom line -- the investors feel like they were had -- the movie with a cool soundtrack and clothing line was a fiction ... the only thing that was real was Jones using their money to profit from the music and the threads.
The investors want $700K minimum.
Calls to Jones were not returned.