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 roughly 700 investors in Ontario.
Key developments:
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David Cartu reached a settlement with the OSC, acknowledging violations of Ontario securities law.
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He was ordered to pay CAD 315,000 in fines and costs.
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Despite this, OSC officials clarified that David was not the main orchestrator and did not directly persuade investors to engage in trades.
Joshua Cartu, 42, was dropped by the law firm Dentons during the OSC case due to unpaid legal fees. He has a background in online gambling and was appointed CEO of Dice Partners, a Panama-registered gambling firm, in 2008. In a prior lawsuit, two American investors accused Josh of seizing control of the company and misappropriating over $10 million USD, which he denied. The case was dismissed in 2013 on jurisdictional grounds.
U.S. Proceedings: CFTC Fraud Allegations
In September 2020, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil complaint in Texas against the Cartu brothers and several associates, alleging extensive binary options fraud.
Named co-defendants include:
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Ryan Masten (Texas)
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Leeav Peretz and Nati Peretz (Canadian-Israelis)
The CFTC accuses the group of operating fraudulent trading platforms and accepting $165 million in investor funds via credit card payments.
Alleged fund transfers:
|
Name |
Amount |
Offshore Destination |
|
Josh Cartu |
$9.2 million |
Belize |
|
Jonathan Cartu |
$9.2 million |
Seychelles |
|
David Cartu |
$4.9 million |
British Virgin Islands |
|
David Cartu (2) |
$4.1 million |
United Kingdom |
These transfers allegedly occurred through a network of offshore entities used to disguise the origin and movement of illicit funds.
Where Are They Now?
Despite multiple charges and investigations, the Cartu Brothers remain at large. Reports indicate they continue to enjoy a life of luxury, with Joshua Cartu frequently posting about lavish experiences on Instagram (@jcartu), where he boasts over 780,000 followers. His posts include exotic travel, luxury vehicles, and high-profile events.
Current locations (according to CTV News):
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David Cartu: Believed to be residing in Georgia.
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Josh Cartu: Reportedly living in Budapest, Hungary.
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Jonathan Cartu: Suspected to be in either Israel or Russia.
Call for Whistleblowers
Authorities and investigators are seeking public assistance in locating the Cartu Brothers. Anyone with relevant information, including photographs or sightings, is encouraged to submit tips anonymously through the whistleblower system or via official social media channels.
Submissions will be reviewed and, if verified, shared with relevant enforcement bodies and the public in an effort to bring accountability and justice to defrauded investors.