On August 20, 2024, Joshua Cartu, 45, a prominent figure in the notorious Cartu Brothers‘ binary options fraud scheme, was detained in Russia. Court press service said Cartu was under an Interpol Red Notice due to accusations that he was part of a group that defrauded investors between 2013 and 2017. The Cartu Brothers operated the GreyMountain Management (GMM) Binary Options fraud scheme. On August 24, 2024, Cartu was released.
Short Narrative
On August 24, 2024, a Russian court in Saint Petersburg released Israeli-Canadian citizen Joshua Cartu, who had been detained earlier in the week at the request of the United States. Cartu, known as the “Ferrari fugitive” for his luxurious lifestyle and race car ventures, is accused of defrauding investors of over $200 million in a binary options scam operated primarily from Israel between 2013 and 2017. Despite being on an Interpol Red Notice, the court terminated proceedings against Cartu, citing a lack of an official extradition request from the U.S.
Most recently, the fugitive former Wirecard board member Jan Marsalek found refuge in Russia. Russia is known for protecting people persecuted in the West. Perhaps Marsalek and Cartu will toast the release in Moscow. They should know each other, as Wirecard was one of the payment partners for the Cartu Brothers‘ GMM scheme.
Key Details:
- Charges: Cartu and his brothers, David Cartu and Jonathan Cartu, are accused of orchestrating a $60 million fraud involving binary options.
- Detention and Release: Arrested by Interpol in Russia, Cartu was released after the court found no formal U.S. extradition request.
- Background: The binary options industry was banned in Israel in 2017 after numerous fraud cases involving global investors.
- Implications: Cartu’s release raises concerns about international cooperation on financial crimes, especially between countries without an extradition treaty.
Read More:
- Read more in The Times of Moscow
- Read our report about Joshua Cartu (here) and GMM (here)
Actionable Insight:
The release of Cartu could complicate future efforts to extradite financial crime suspects, highlighting the need for stronger international agreements and regulatory measures.
Whistleblower Request:
If you have any information about binary options scams or related financial fraud, please contact us securely via our whistleblower system, Whistle42. Your identity will remain confidential.
