Follow the Money – Cartu Brothers, Wirecard and GlobalNetInt

Cartu Brothers with Wirecard and GlobalNetInt
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GlobalNetInt has for sure no issue with the online gambling business. Gambling is by far their most important high-risk client segment, our sources say. And then there are the Cartu Brothers. FinTelegram has been covering the brothers and their scam activities for more than two years. As did law enforcement agencies and financial market regulators. The U.S. CFTC and the Canadian OSC have sued David Cartu, Joshua Cartu, and Jonathan Cartu for alleged binary options fraud.

The regulators ask for money, including disgorgement of ill-gotten gains, civil monetary penalties, and restitution payments to victims. The CFTC claims damages of $165M. However, the actual damage is likely to be much higher. Following our latest R4I, we received information that the Cartu Brothers companies have their accounts at the Lithuanian GlobalNetInt. We want to learn more!

Binary Options and Wirecard it was

The Cartu Brothers and the CFTC Complaint against their binary options schemes

Under the leadership of David Cartu, the brothers operated a binary options scam hub between 2014 and 2018 through Irish-registered entities GreyMountain Management Ltd (GMM) and Mega Optimization Ltd (dba MegaCharge) and other companies in the UK, Israel, and offshore, ripping off tens of thousands of victims worldwide. This is the subject of lawsuits by the CFTC and OSC and investigations by various Law Enforcement Agencies.

An interesting aspect of this was the close cooperation with Wirecard, which was used as a laundromat. The then director of Wirecard UK & Ireland, Michelle Molloy, later moved to the brothers’ MegaCharge as a director. In Dublin, Wirecard had the office right next to GMM. Convenient, right? Whether and to what extent the Cartu Brothers were shareholders in Wirecard is currently wild speculation. FinTelegram does not yet have any hard facts in this regard.

Sometime in late 2017 or early 2018, the brothers’ binary options era came to an end. GMM was sent into liquidation. Aggrieved investors have so far sued just as unsuccessfully as CFTC and OSC. They focused again on their core business, online casinos. With this, they are big customers of GlobalNetInt (GNI) in Lithuania. GNI is part of the FCA-regulated MoneyNetint Group.

Gambling it is

The Cartu Brothers have worked in the online gambling sector before, during, and after their binary options activity.

For several years, one of their frontmen has been the Israeli Jonathan Tsarfati (aka Jonathan French). The latter is a director of the Estonian Worldwide CurrencyPlace OÜ as well as the Israeli Captiva Cay Ltd, which is affiliated with the Irish registered Captiva Cay Platforms Ltd in Dublin. Their GreyMountain Management Ltd (GMM) used to have Dublin offices too. According to the information provided to us, all these companies are said to be part of the Cartu Brothers‘ network. They are also clients of GlobalNetInt UAB, regulated by the Bank of Lithuania.

Jonathan Tsarfati is also the director of Sandbox Media Ltd and the real-estate broker Flamingo Gardens Capital Ltd, both registered in Israel. Both are connected to the brothers’ network.

The Dutch Gaming Authority Penalty

The brothers’ network includes the Cyprus-registered Honeydew Trading Ltd, which operates or has operated online casinos. In November 2018, the Dutch Gaming Authority fined Honeydew Trading and its affiliated CyberRock Entertainment N.V. (Curacao) €350,000 for illegally offering gambling services in Holland. The ultimate beneficial owners (UBO) behind both companies are said to be the Cartu Brothers. Since the fine, both companies have disappeared from the radar, it seems.

GNI is apparently happy with gambling clients.

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