Legal Battle in Ireland: Cartu Brothers and Former Directors Sued for Multi-Million Dollar Binary Options Fraud

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.

Proceedings in the Irish Courts

Senior Counsel Marcus Dowling, representing William Thomas Powers, asserted that the defendants engaged in a “massive fraudulent scheme,” funneling approximately $150 million through the company’s accounts. The fraud was described as a coordinated and systematic operation. The Central Bank of Ireland was reportedly made aware of GreyMountain’s misconduct in 2016. According to court statements, David Cartu allegedly instructed his attorney to mislead the regulator regarding the company’s activities.

Funds obtained from investors were funneled into the company and then transferred through a network of associated entities, including Glenridge Capital, an entity allegedly overseen by David Cartu.

CFTC Lawsuit in the United States

In September 2020, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint accusing the Cartu Brothers and several associates of perpetrating a $165 million binary options fraud. However, due to jurisdictional challenges, U.S. authorities were unable to formally serve the complaint.

The CFTC’s legal filing names additional defendants: Ryan Masten, a Texas resident, and Canadian-Israeli brothers Leeav and Nati Peretz. All are accused of defrauding investors and committing securities violations. The complaint alleges they operated entities that collectively accepted over $165 million in credit card payments from clients across the globe.

Profits and Offshore Transfers

The CFTC further detailed how the Cartu Brothers profited substantially from the scheme:

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Originally reported by Scam-Or Project.