The Israeli-Canadian Cartu Brothers – David Cartu, Joshua Cartu, and Jonathan Cartu – are notorious binary options scammers and are in big trouble with regulators and law enforcement agencies in the U.S. and Canada. In Toronto, the Ontario Securities Commission (OSC) has brought a fraud complaint against the brothers. The U.S. Commodities and Futures Commission (CFCT) has also sued the brothers for alleged binary options fraud in Texas. David Cartu is also notorious for his proximity to Wirecard. Insiders claim he was a major Wirecard shareholder.
The Canadian Case
Recently, the Canadian CTV News brought a comprehensive report about the Cartu Brothers. The Canadian regulator OSC brought a civil enforcement action against the Cartu Brothers, claiming they illegally sold binary options to some 700 Ontario investors. David Cartu agreed to a settlement (report here) in which he admitted breaching Ontario securities law. He has to pay CAD 315,000 in penalties and fees – a tiny percentage of the money he received from the scheme, the Canadian CTV News stated. However, OSC investigators said they were satisfied that David Cartu “was not the principal actor in the binary options trading program and did not induce the investors to enter into the trades.”
Eldest brother Joshua “Josh” Cartu, 42, was dismissed as a client by the Toronto law firm Dentons in the OSC case because he hadn’t paid his legal fees. Josh has his entrepreneurial roots in the online casino business. In 2008, he was hired as CEO of Dice Partners, an online gambling venture incorporated in Panama. CTC News reports, that two of the venture’s U.S. investors sued Cartu, alleging he had seized control of the company’s websites and diverted more than US$10 million of its money to his own bank accounts. Cartu denied the allegations in the lawsuit and said he was a citizen and resident of Israel at the time and had never even been to Wyoming. The lawsuit was dismissed in 2013 at his request after the court found it didn’t have jurisdiction over a non-resident.
The U.S. Case
The U.S. Commodity and Futures Commission (CFTC) filed a fraud complaint against the Cartu Brothers and their co-conspirators in September 2020 alleging vast binary options fraud with a volume of $165 million. The lawsuit could not be served by the CFTC or the relevant U.S. court. The Cartu Brothers, along with the Texas resident Ryan Masten and the Canadian-Israeli brothers Leeav Peretz and Nati Peretz, are accused of binary options fraud and securities violations involving companies that took in US$165 million in credit card payments from investors. Please read this report here.
According to the CFTC complaint, the Cartu Brothers’ business was highly lucrative. Josh Cartu and Jonathan Cartu each transferred US$9.2 million in profits from these companies to offshore accounts. Josh’s money was transferred to a company set up in Belize; Jonathan’s to a company in Seychelles. David Cartu received US$4.9 million through a corporation in the British Virgin Islands and another US$4.1 million via a U.K. corporation.
Let’s find the Cartu Brothers
It is sad for the tens of thousands of investors worldwide that the Cartu Brothers have yet to be held accountable for their fraudulent methods and schemes, living a lavish, even boastful lifestyle with their millions. In some cases, like the vain Joshua Cartu, even in Instagram public. He boasts more than 780,000 followers on an Instagram account (@jcartu) that documents his exploits racing Ferraris, attending Milan Fashion Week, or taking a ride in a Russian MiG fighter jet.
According to CTV News‘ findings, David Cartu and his wife may currently be living in Georgia, Josh Cartu is said to still be in Budapest, Hungary, and Jonathan Cartu is said to be living in either Israel or Russia.
We would like to know where the Cartu Brothers are currently located. Please share information or pictures of the brothers via our whistleblower system or via Facebook (here) or Twitter (here). We will share the information with the public and authorities.
