CFTC Targets Cartu Brothers in $165 Million Binary Options Fraud

Regulatory Crackdown Targets Cartu Brothers in Massive Fraud Scheme

The binary options sector faces renewed legal scrutiny as authorities take aim at some of its most prominent figures. At the center of this latest enforcement wave are David, Jonathan, and Joshua Cartu, three brothers accused of orchestrating a large-scale investment fraud. While the Canadian Ontario Securities Commission (OSC) had already pursued legal action, the U.S. Commodity Futures Trading Commission (CFTC) has now initiated its own civil proceedings. The case names a total of six individuals and four corporate entities allegedly responsible for defrauding investors of more than $165 million, funneled through the Irish-based firm GreyMountain Management Ltd (GMM).

Inside the CFTC Allegations

Between May 2013 and April 2018, the Cartu brothers—David, Jonathan, and Joshua—were allegedly engaged in promoting and distributing unregulated binary options through a number of brands, including BeeOptions, Glenridge Capital, and Rumelia Capital. These offerings were directed at retail investors and operated outside legal trading exchanges.

The Cartu Network and Key Players

David and Joshua Cartu stood out not just for their roles in the binary options space, but also for their public image—especially their taste for high-end sports cars like Ferraris. Joshua, who has lived in Budapest for several years, claimed to be working on a tech initiative known as AEGIS LABS, specializing in artificial intelligence and machine learning.

The Cartu operation extended beyond the brothers themselves. They worked in tandem with Leeav Peretz and Nati Peretz, two Canadian-born individuals residing in Israel. Together, they ran a network of call centers—often referred to as boiler rooms—which targeted investors in the United States. These centers lured victims with promises of rapid gains ranging from 60% to 85%, often within short timeframes.

Promotional materials and sales calls falsely portrayed the operators as experienced financial professionals, misrepresented their geographic location, and used aliases to conceal their real identities. Meanwhile, customers were led to believe that the investment products offered were both legitimate and profitable—when in reality, the vast majority ended up losing their funds.

Additional Defendants and Corporate Ties

The CFTC complaint also implicates several other individuals and corporate entities tied to the broader scheme:

These companies were allegedly used to process transactions, mask revenue flows, and facilitate the operation of fraudulent trading platforms controlled by the Cartu group.

The Role of GreyMountain Management and Wirecard

David Cartu served as the CEO of GreyMountain Management Ltd, a key payment processing firm in the fraud operation. GMM had close ties with the now-defunct Wirecard, and was involved in acquiring numerous binary options scam clients.

• Michelle Molloy, former CEO of Wirecard UK & Ireland, later took on an executive role under Cartu at MegaCharge.

• Many scam brands using GMM relied on Worldwide Tech Limited, managed by Uri Katz, a known associate of David Cartu.

Fund Flow Summary

According to CFTC findings, more than $165 million in credit card payments were processed through GMM, even after regulatory actions intensified post-September 1, 2015.

Profit Distribution Through Offshore Channels

The fraudulent platform, often referred to as the “Cartu Platform,” operated through various offshore shell entities. Profits were distributed as follows (between Sept 2014 – Jan 2017):

Penalties and Relief Sought by the CFTC

The U.S. CFTC is pursuing the following remedies:

• Disgorgement of all profits made through the fraudulent scheme

• Civil monetary penalties

• Customer restitution

• Permanent bans on registration and trading

• Injunctions to prevent future violations of the Commodity Exchange Act

Media Coverage

The Scam-Or Project has extensively documented the Cartu Brothers’ activities, contributing investigative insights into their operations and associated networks. Their reports have been critical in connecting the dots between call centers, payment processors, and fraudulent trading platforms.