Three Brothers Charged In $225M Binary Options Fraud By Canada

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The Ontario Securities Commission, or OSC, has given out its latest enforcement action. Within it, it has charged three Canadian-Isrealy brothers for defrauding 700 Ontario-based investors out of a bit more than $1.4 million.

$225 Million Stolen

Jonathan, Joshua, and David Cartu, are all charged with operating two different binary options brands, namely Glenridge Capital and Beeoptions. They did so through a call center they had established in Israel. The facility is now shuttered, but is believed to have operated within the Tel Aviv Area, and went by the name of Tracy PAI Management Limited, or simply Tracy PAI.

According to the Ontario watchdog’s complaint, during the years of 2014 and 2017, the two brands had received approximately $225 million from investors across the globe. This includes Canada, as well. Once this money was given, with the belief it was invested, the defendants typically refused these same clients to withdraw their money afterward.

Cold-Calls From Israeli Call Center

The OSC explained that the Isreal-based call center functioned as a “boiler room,” which is a type of fraud that involves cold-calling potential investors. These calls are in an attempt to convince these investors to buy exotic financial products.

As one would expect from such a fraud case, the sales staff at these fraudulent companies lied about their locations, names, experience, titles, and the fact that they made profits should the traders lose money.

Furthermore, the OSC threw allegations at a company known as UKTVM Ltd, which was established in the UK. According to the regulator, this was established to process the payments for Beeoptions.com as well as Glenridgecapital.com. As time went on, processing was carried out by another company, going by Greymountain Management, which itself was incorporated in Ireland and acquired various credit card payments for companies operating binary options.

An Ongoing Battle

The actions today stand as the latest facet of a global crackdown against operatives in binary options. This comes after a series of reports had uncovered a massive fraud operation in the shady industry, centering itself in Israel. Back in August of 2019, the CEO of Yukom, Lee Elbaz, was convicted of three counts of wire fraud, as well as one count of conspiracy to commit wire fraud by a federal judge. This was done in connection to binary options trading as well, and Elbaz was sentenced to prison for 22 years for her crime.

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