Ongoing Legal Reckonings in the Binary Options Industry The legal system is currently seeing a wave of civil and criminal cases targeting figures from the notorious binary options scene. In the United States, Israeli boiler room operator Lee Elbaz was found guilty of investment fraud in August 2019 and sentenced to 22 years in prison, along with an order to repay $28 million to defrauded investors. Meanwhile, in Austria, Gal Barak, another Israeli national, received a four-year prison sentence without probation, with seized funds designated for victim restitution. North American regulators, including those in the United States and Canada, are…
Author: Tom
CFTC Proceeds With Legal Notification via Media Publication In 2020, the U.S. Commodity Futures Trading Commission (CFTC) launched civil proceedings in a Texas federal court, targeting a group of individuals and firms believed to be involved in activities tied to binary options trading platforms. The agency claims that customers collectively lost approximately $165 million through these operations. Efforts to reach some of the named parties through standard legal service channels were unsuccessful. To move the case forward, the CFTC resorted to public announcement, including a published legal notice in The Times of Israel. The Scam-Or Project republishes key details here…
Ongoing Legal Developments in the Cartu Brothers Case The Scam-Or Project has provided a recent update on the ongoing investigations targeting the Cartu Brothers—David, Jonathan, and Joshua Cartu—who are accused by both the U.S. Commodity Futures Trading Commission (CFTC) and the Ontario Securities Commission (OSC) of orchestrating a wide-scale binary options fraud scheme. Following a hearing held on January 26, 2021, the OSC issued a fresh procedural order, establishing new key dates for the case: February 26 and March 25, 2021. Notably, legal representation at the hearing was present only for David Cartu; his brothers Jonathan and Joshua Cartu were…
Instagram Appearance While Under Investigation At a March 25, 2021, hearing before the Ontario Securities Commission (OSC) regarding fraud allegations (File No. 2020-14) against David Cartu, Jonathan Cartu, and Joshua Cartu, the latter failed to appear or send legal representation, despite having been duly served. The OSC is not alone in its pursuit—Joshua Cartu and his brothers are also being targeted by the U.S. Commodity Futures Trading Commission (CFTC), which has filed a civil enforcement action (Case 1:20-cv-00908). The complaint accuses the Cartu brothers of operating unlicensed binary options trading platforms that allegedly siphoned over $165 million from unsuspecting investors.…
Background: $165 Million Binary Options Fraud The Canadian-Israeli Cartu Brothers—David, Joshua, and Jonathan Cartu—have been identified as key figures behind a $165 million binary options scheme, according to a fraud complaint filed by the U.S. Commodity Futures Trading Commission (CFTC). In addition to the Cartu siblings, Nati Peretz and Leeav Peretz were also named in the 2020 U.S. legal action. Simultaneously, the Ontario Securities Commission (OSC) pursued its own enforcement against the Cartu Brothers over similar fraudulent activities targeting Canadian investors. However, the latest development has raised eyebrows across the regulatory and financial fraud watchdog community. Settlement Terms: CAD 300,000…
Introduction: Following the Money Trail The Cartu Brothers—David, Joshua, and Jonathan—remain central figures in one of the largest binary options fraud investigations in recent years. While financial regulators in both the U.S. and Canada have launched legal actions against them, new revelations suggest their operations extended far beyond binary options—deep into online gambling and connections with financial service providers such as Wirecard and GlobalNetInt. Online Gambling and GlobalNetInt’s Involvement According to sources, GlobalNetInt (GNI), a Lithuania-based financial institution, appears to cater extensively to clients from the online gambling sector. The Cartu Brothers, known for their fraudulent ventures, reportedly maintain business…
Overview of the Allegations Canadian-Israeli nationals David Cartu and Jonathan Cartu, along with their brother Joshua Cartu, are key figures in an alleged large-scale binary options fraud involving the now-defunct Irish firm GreyMountain Management Ltd. According to The Irish Times, a legal action has been initiated by Florida-based investor William Thomas Powers and over 30 other plaintiffs. The lawsuit targets David and Jonathan Cartu as well as former GreyMountain directors Ryan Coates and Liam Grainger. The plaintiffs claim to have suffered collective losses exceeding $4 million. The case is currently before Justice Michael Twomey, having commenced on 28 June 2022.…
Arrest in the UAE: Israeli-Canadian Cartu Brothers Face International Legal Action Scam-Or Project thanks whistleblowers for their continued support in exposing financial misconduct and cybercrime. Recent developments indicate that David Cartu and Jonathan Cartu, key figures behind the infamous binary options scheme linked to GreyMountain Management Ltd (GMM) in Ireland, have been allegedly arrested in the United Arab Emirates. This information comes from a trusted whistleblower and follows mounting legal pressure against the Cartu Brothers. Ongoing Legal Proceedings A new lawsuit has been filed on behalf of victims against: David Cartu Jonathan Cartu GMM directors: Ryan Coates and Liam Grainger…
Interpol Red Notices and UAE Arrests According to multiple whistleblower reports received by Scam-Or Project, law enforcement agencies continue to pursue the Cartu Brothers. Recently, David Cartu and Jonathan Cartu were reportedly detained in the United Arab Emirates (UAE) under active Interpol Red Notices. These notices serve as global alerts requesting that local authorities identify and provisionally detain individuals pending extradition or legal action. Legal Actions in Israel In addition to international pursuits, the Cartu Brothers are reportedly facing legal challenges in Israel. Former employees have allegedly initiated legal proceedings, accusing the brothers of failing to pay agreed-upon salaries. Israeli…
Ongoing Investigation: Cartu Brothers Under Regulatory Scrutiny The Israeli-Canadian siblings—David Cartu, Joshua Cartu, and Jonathan Cartu—are facing mounting legal challenges due to their alleged involvement in binary options fraud schemes. Both U.S. and Canadian regulators have filed complaints against the trio, with accusations ranging from securities violations to financial fraud totaling over $165 million. According to Scam-Or Project, authorities are actively working to locate the brothers, who remain elusive. Canadian Enforcement: OSC Civil Action As reported by CTV News, the Ontario Securities Commission (OSC) has initiated legal proceedings against the Cartu Brothers, asserting that they unlawfully offered binary options to…