The Legal Architect of a Deceptive Industry
Israeli attorney Moshe Strugano, aged 50, played a significant role in the binary options industry, particularly within its fraudulent network. Closely tied to the discredited Yukom Communications scheme, Strugano was known for crafting legal opinions that enabled binary options scams to operate under a façade of legitimacy. The binary options landscape in Israel featured notorious figures such as Yossi Herzog, Kobi Cohen, Lee Elbaz, and David Cartu, all of whom orchestrated extensive fraudulent operations globally. These individuals misled tens of thousands of retail investors, causing financial damages estimated in the hundreds of millions. Their schemes heavily relied on the legal infrastructure provided by professionals like Strugano.
OSC Charges Against the Cartu Brothers – A Canadian Perspective
The Ontario Securities Commission (OSC) has initiated civil proceedings against David, Jonathan, and Joshua Cartu, three brothers with dual Canadian-Israeli nationality. They stand accused of unlawfully promoting binary options to Canadian residents and swindling Ontario investors out of approximately $1.4 million, as part of a much broader international fraud totaling $233 million.
The OSC claims the Cartu brothers relocated from Ontario to Israel within the past decade. Since then, they’ve assimilated into affluent circles, reportedly indulging in high-end real estate, model companionship, and luxury motorsport hobbies.
Fraud Infrastructure: Companies and Partnerships
According to the OSC’s Statement of Allegation, the Cartu brothers established and controlled two entities crucial to the operation and processing of binary options investments:
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UKTVM Ltd. (UKTVM)
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Greymountain Management Limited (Greymountain)
While UKTVM served as a channel for onboarding investors, Greymountain, incorporated in Ireland, was primarily responsible for payment processing services linked to the Cartu brands. It operated from mid-2014 to 2017, providing backend infrastructure for these fraudulent platforms.
Global Impact and Scam-Or Project Sources
The Cartu brothers are identified as the beneficial owners behind the Greymountain (GMM) binary options ecosystem, as well as various unlicensed payment processors. Their fraudulent empire affected tens of thousands of victims across multiple continents.
Numerous deceptive brands, including BeeOptions and Glenridge Capital, are specifically referenced in the OSC filing. Working alongside Israeli associate Uri Katz and with processing support from Wirecard, the Cartus ran dozens of binary options schemes between 2014 and 2017, both independently and through affiliate networks.
Scam-Or Project received substantial insider documentation detailing the Cartu operations, shedding light on the scope and coordination of these scams.