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GMM Case – Canadian regulator OSC charges Cartu Brothers of running an illegal $233 million binary options scheme

Canadian OSC charges David Cartu and his brothers

FinTelegram has reported since 2018 about the huge Binary Options Scam of the three Cartu brothers David Cartu, Jonathan Cartu, and Joshua Cartu. Over the course of the last two years, we have received numerous requests from victims and their lawyers as well as from regulators. In this regard, we have been happy to provide the information available to us and have, among other things, facilitated lawsuits in Israel. Now the Canadian Ontario Securities Commission (OSC) has claimed that their GreyMountain Management (GMM) binary options schemes received more than 233 million Canadian dollars from clients worldwide.

Read the OSC Statement of Allegation here

Illegal Binary Options operations

The OSC claims that die Cartu brother have illegally operated binary options platforms from approximately July 2013 to April 2017. The Cartus allegedly obtained $1.4 million from approximately 700 Ontario investors and directed these funds to accounts held by entities they owned or controlled. To conceal their conduct, the Cartus and their partners and employees lied about the location of their operations, used aliases, and obscured their connection to payment processing companies they owned and operated. It sounds like a typical scam, doesn’t it?

It is estimated that over the course of the Material Time, UKTVM and Greymountain bank accounts received approximately $233 million from the Respondents’ global binary-options related operations.

OSC Statement of Allegation

GMM’s illegal binary options platforms included Beeoptions and Glenridge Capital.

According to the OSC investigation, Cartus used two companies, GreyMountain Management Ltd (Ireland) and UKTVM Ltd (United Kingdom), to operate its binary options schemes. In addition, the Boiler Room Services were handled by Tracy P.A.I. Management Ltd of Israel.

Payment Facilitator for other schemes

GreyMountain Management and UKTVM were used, among other things, to facilitate payments from client-victims. OSC notes that the Cartu brothers not only used these companies for their own binary options schemes but also made them available to other scammers. They “hired out Greymountain payment processing services to other third-party binary options operators for a fee, further facilitating the trading of binary options.

GMM worked closely with the German Wirecard to process the payments.

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