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CFTC's search for Cartu brothers proves fruitless

2021-07-16 20:54 ET - Street Wire

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by Mike Caswell

The U.S. Commodity Futures Trading Commission says it has been unable to track down the Cartu brothers of Ontario, who it charged for a fraudulent options trading operation that brought in $165-million. (All figures are in U.S. dollars.) The CFTC has been attempting to serve the brothers with the charges for about 10 months. It believes they are in Israel, Russia or Hungary.

The charges against the brothers stem from a scheme that the CFTC claims defrauded scores of investors in the United States and Canada. The Cartus ran an operation that enticed investors with promises of returns as high as 85 per cent, the CFTC says. The trades, however, were rigged against the investors and resulted in few payouts, according to the CFTC.

The case against the brothers has been largely stalled since it was filed, and the reason for the delay became clear in a motion the CFTC filed on Wednesday, July 14. The regulator says that despite diligent efforts, it has been unable to serve the brothers with the charges. The regulator believes that one of the brothers, David, owns property in Ontario, but has been unable to find him there. It lists the other brothers, Jonathan and Joshua, as living in Israel, Russia or Hungary. Attempts to serve them in Israel and Hungary have not succeeded, however.

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