Russian law enforcement authorities have detained Joshua Cartu, a 45-year-old Israeli-Canadian entrepreneur and racecar driver, known for his involvement in the notorious Cartu Brothers’ binary options fraud scheme. Cartu was apprehended by the Interior Ministry’s Interpol bureau at St. Petersburg’s Pulkovo International Airport, marking a significant development in the ongoing investigations surrounding the Cartu Brothers and their fraudulent activities.
Background on the Cartu Brothers’ Fraud Scheme
The Cartu Brothers—Joshua, David, and Jonathan—are at the center of a massive binary options fraud operation run through their Irish company, GreyMountain Management (GMM). This scheme, which exploited investors across multiple jurisdictions, promised high returns through online binary options trading, a form of financial betting. The brothers’ operation, however, was anything but legitimate, deceiving investors and siphoning off millions of dollars.
The U.S. Commodity Futures Trading Commission (CFTC) filed charges against the Cartu brothers and their associates in September 2020, accusing them of defrauding investors of $204 million between 2013 and 2018. The scheme involved various tactics, including the manipulation of trading platforms to ensure investor losses, false representations of investment opportunities, and the deliberate targeting of vulnerable individuals.
Details of Joshua Cartu’s Arrest
According to reports by 47News and the Times of Moscow, Joshua Cartu is currently a suspect in a $60 million fraud case. His arrest at Pulkovo International Airport is a major step forward in the international effort to bring the Cartu brothers to justice. Russian news outlet 78 has reported that Cartu’s detention period has been extended for 72 hours by a decree from the Moscow district, with a court hearing scheduled for August 24.
If further confirmation is received, Russian authorities are expected to seek a formal arrest warrant. However, the absence of an extradition treaty between Russia and the U.S. could complicate any potential efforts to bring Cartu back to face justice in the United States.
Broader Legal Context
The Cartu brothers have faced legal challenges across various jurisdictions due to their fraudulent activities. In March 2024, a Texas court held Jonathan Cartu and his associates—including Leeav Peretz, Nati Peretz, and Blue Moon Investments Inc.—liable for their involvement in the fraud, ordering them to pay $204 million in civil monetary penalties and restitution. The Ontario Securities Commission (OSC) in Canada also accused the Cartu brothers in 2020 of pocketing $233 million through global binary options schemes. Joshua Cartu, alongside Jonathan, was ordered to pay CAD 3.3 million by Ontario’s Capital Markets Tribunal in July 2022.
Their fraudulent operations targeted a wide array of victims, including retirees, disabled veterans, struggling parents, and early-career millennials, leaving many in financial ruin.
Joshua Cartu’s Lavish Lifestyle
Despite the legal turmoil surrounding his actions, Joshua Cartu was known for flaunting an extravagant lifestyle on social media, often showcasing his collection of Ferraris and his participation in elite races and rallies. Reports suggest that Cartu has been residing in Russia for the past three years, maintaining a low profile amid the mounting legal pressures.
Future Implications
The arrest of Joshua Cartu in Russia could have far-reaching implications for the ongoing investigations into the Cartu brothers’ fraudulent empire. As the legal processes unfold, questions remain about the potential extradition of Cartu and the broader impact on global efforts to combat financial fraud.
With the next court hearing scheduled for August 24, all eyes will be on the Russian judicial system as it navigates this complex international case. FinTelegram and other outlets will continue to monitor the situation closely, providing updates as new information emerges about Joshua Cartu’s fate and the broader consequences for the Cartu Brothers’ network.
This arrest represents a critical juncture in the global pursuit of justice for the victims of the Cartu brothers’ schemes, with the potential to set precedents in international law enforcement cooperation against financial crimes.
