Russian law enforcement authorities detained Joshua Cartu, an Israeli-Canadian racecar driver and entrepreneur, at St. Petersburg’s Pulkovo International Airport. Cartu is wanted by the U.S. for allegedly defrauding investors of millions of dollars through an illegal online stock trading scheme. He will be held for up to two days while the U.S. confirms he is under investigation. If confirmation is received, Russian authorities will seek a court order to formally place him under arrest, as Russia and the U.S. do not have an extradition treaty.
The U.S. Commodity Futures Trading Commission charged Cartu and two of his brothers, along with two business partners and four companies, with defrauding customers of $165 million through online investment schemes known as binary options between 2013 and 2018. In March 2024, a Texas court found Cartu and others liable for fraud and ordered them to pay $204 million in civil monetary penalties and restitution. Additionally, Canada’s Ontario Securities Commission accused the Cartu brothers of pocketing $233 million in global binary options-related schemes that promised returns between 60-85%.
According to Toronto Life magazine, the victims of the Cartu brothers’ schemes included retirees, disabled veterans, struggling parents, and early-career millennials. Joshua Cartu was known for flaunting his lavish lifestyle on social media, owning a dozen Ferraris, and regularly participating in races and rallies for affluent supercar owners. Despite his luxurious lifestyle, Cartu now faces serious legal consequences for his alleged involvement in fraudulent activities targeting vulnerable individuals.
It has been reported that Russian authorities will release Cartu if confirmation of the U.S. investigation and necessary documents for his arrest are not received within 48 hours. The detention of Cartu sheds light on the global reach of financial fraud schemes and the cooperation between law enforcement agencies across different countries. The high-profile nature of this case, involving a well-known racecar driver and entrepreneur, underscores the severity of the allegations and the potential impact on those affected by the fraudulent activities.
The detention of Joshua Cartu in Russia serves as a reminder of the legal consequences that individuals face for engaging in fraudulent financial activities. The charges against Cartu and his associates highlight the importance of regulatory oversight and enforcement in protecting investors and preventing financial crime. The substantial penalties imposed by the U.S. and Canadian authorities demonstrate the serious nature of the offenses committed by the Cartu brothers and their business partners.
In conclusion, the detention of Joshua Cartu, an Israeli-Canadian racecar driver and entrepreneur, in Russia for alleged financial fraud is a significant development in the ongoing investigation into his illegal online stock trading scheme. The charges against Cartu and his associates, along with the penalties imposed by U.S. and Canadian authorities, underscore the serious nature of the allegations and the impact on those affected by the fraudulent activities. The case highlights the global cooperation between law enforcement agencies in addressing financial crimes and seeking justice for victims of such schemes.
