Overview of the GMM Case
The Scam-Or Project has been following the Cartu Brothers’ binary options operations since 2018. David, Jonathan, and Joshua Cartu have been linked to a massive global binary options scam that, according to recent claims by the Ontario Securities Commission (OSC), defrauded clients out of more than CAD 233 million through their entity, GreyMountain Management (GMM).
Over the years, numerous victims, legal teams, and regulators have gathered and exchanged information related to the Cartu brothers’ activities. This collaborative effort has supported various legal proceedings, including actions in Israel.
Unlawful Binary Options Operations
The Ontario Securities Commission (OSC) alleges that the Cartu brothers were behind the operation of unlicensed binary options trading platforms from July 2013 to April 2017. During this timeframe:
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Around 700 investors from Ontario collectively lost approximately $1.4 million.
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Investor funds were transferred into bank accounts linked to entities that were either owned or overseen by the Cartus.
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The brothers and their associates deliberately misrepresented the geographical location of their business activities.
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They made use of fictitious names and concealed affiliations with payment processors under their control.
The OSC asserts that such conduct exhibits the classic traits of deceptive and fraudulent financial enterprises.
Total Global Impact
During the alleged “Material Time,” financial accounts linked to GreyMountain Management Ltd (Ireland) and UKTVM Ltd (UK) reportedly received a total of $233 million related to binary options trading.
Binary Options Brands Involved:
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BeeOptions
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Glenridge Capital
These platforms were central to the Cartu-led binary options fraud and were managed under the umbrella of GMM.
Boiler Room Operations and Infrastructure
The operational back-office and call-center services—often referred to as boiler rooms—were allegedly provided by Tracy P.A.I. Management Ltd, an Israeli company. These boiler rooms played a critical role in aggressive sales tactics used to lure victims into investing more funds.
Third-Party Use of Payment Infrastructure
Importantly, the Cartu brothers extended the use of their payment systems beyond their internal operations. According to the OSC, GreyMountain Management and UKTVM were also made available to external binary options operators. Specifically, these companies:
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Functioned as transaction intermediaries for other fraudulent schemes.
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Collected service fees for granting access to their financial infrastructure.
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Facilitated illicit binary options trading conducted by unaffiliated third parties.
This arrangement allowed a wider network of scams to operate using the same payment processing channels originally established by the Cartu enterprise.
Collaboration with Wirecard
GreyMountain Management reportedly partnered with Wirecard, the disgraced German financial services provider, to manage and process victim payments. This relationship allowed the Cartu operation to maintain a sophisticated, international transaction pipeline—further complicating efforts by victims and regulators to trace and recover lost funds.