CFTC Acts against BeeOptions, Glenridge Capital, Rumelia Capital
- Three Canadian-Israeli brothers operated the binary options brands, and set up payment firms in Ireland.
The Commodity Futures Trading Commission (CFTC) has brought civil charges against five Canadians, including three Canadian-Israeli brothers, for soliciting victims to trade binary options, bilking investors out of $165 million.
Joshua Cartu, Jonathan Cartu, and David Cartu allegedly operated three binary options brands, BeeOptions, Glenridge Capital, and Rumelia Capital, from a Call Center Call Center In general, a call center is defined as an office equipped with the technology and hardware to handle and process a large volume of incoming or outgoing phone calls. Call Centers today have expanded from simple telecommunication to all forms of communication, including online customer support and live chat features and the use of VOIP, including video calls. Initially, call centers were designed for selling or taking orders and for customer support. Call centers of yesterday were the precursor o In general, a call center is defined as an office equipped with the technology and hardware to handle and process a large volume of incoming or outgoing phone calls. Call Centers today have expanded from simple telecommunication to all forms of communication, including online customer support and live chat features and the use of VOIP, including video calls. Initially, call centers were designed for selling or taking orders and for customer support. Call centers of yesterday were the precursor o Read this Term they established in Israel. The now-shuttered facility, which is understood to have operated from the Tel Aviv area, went by the name of Tracy PAI Management Limited (Tracy PAI).
In addition, the CFTC charges two Canadian brothers living in Israel, Leeav Peretz and Nati Peretz, for helping the Cartu brothers in targeting U.S. residents, as well as investors from Canada, Singapore, UAE, and Britain.
The investors were induced by the defendants to open accounts with false claims that they would earn significant profits, promising 'quick' returns of 'between 60-85%'. In fact, the defendants controlled the software system that their trades were conducted on and manipulated the results of some trades to ensure customers lost their money.
The regulator said the call center in Israel functioned as a 'boiler room', a type of fraud that involves cold calling potential investors offering to sell them exotic financial products.
The CFTC further alleged that the Cartu brothers had set up two companies in Ireland to facilitate Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term for their own binary options brands as well as for other platforms belonging to different people. A company known as UKTVM Ltd. (UKTVM) was established in the UK to process credit card payments for BeeOptions.com and Glenridgecapital.com. At a later date, processing was carried out by a company called Greymountain Management, which was incorporated in Ireland and acquired credit card payments for binary brokers who were unable to obtain banking services.
From 2014 through to 2017, they received about $165 million from investors worldwide, including the US and Canada. Once the money was 'invested', the defendants usually refused to allow these clients to withdraw their money.
A Crackdown on Binary Fraud
Also charged in the same case is Ryan Masten from Texas, and his company BareIt Media, aka SignalPush, as well as All Out Marketing Limited, Blue Moon Investments, Ltd., and Orlando Union Inc., each of these, is an offshore entity owned and controlled by one of the Cartu brothers.
As was customary, sales staff at these companies lied about their names, location, titles, experience, and the fact that they made profits when the traders lost their balance.
“At the direction of the Cartu and Peretz brothers, the individual brokers soliciting U.S. customers falsely represented their financial expertise, compensation structure, physical location, and identity. These brokers also falsely claimed that the offered binary options transactions were profitable when the majority of customers lost money,” the CFTC further states.
The agency is seeking full restitution for the defrauded individuals, disgorgement of earnings from the fraud, civil monetary penalties, permanent registration and trading bans.
The Commodity Futures Trading Commission (CFTC) has brought civil charges against five Canadians, including three Canadian-Israeli brothers, for soliciting victims to trade binary options, bilking investors out of $165 million.
Joshua Cartu, Jonathan Cartu, and David Cartu allegedly operated three binary options brands, BeeOptions, Glenridge Capital, and Rumelia Capital, from a Call Center Call Center In general, a call center is defined as an office equipped with the technology and hardware to handle and process a large volume of incoming or outgoing phone calls. Call Centers today have expanded from simple telecommunication to all forms of communication, including online customer support and live chat features and the use of VOIP, including video calls. Initially, call centers were designed for selling or taking orders and for customer support. Call centers of yesterday were the precursor o In general, a call center is defined as an office equipped with the technology and hardware to handle and process a large volume of incoming or outgoing phone calls. Call Centers today have expanded from simple telecommunication to all forms of communication, including online customer support and live chat features and the use of VOIP, including video calls. Initially, call centers were designed for selling or taking orders and for customer support. Call centers of yesterday were the precursor o Read this Term they established in Israel. The now-shuttered facility, which is understood to have operated from the Tel Aviv area, went by the name of Tracy PAI Management Limited (Tracy PAI).
In addition, the CFTC charges two Canadian brothers living in Israel, Leeav Peretz and Nati Peretz, for helping the Cartu brothers in targeting U.S. residents, as well as investors from Canada, Singapore, UAE, and Britain.
The investors were induced by the defendants to open accounts with false claims that they would earn significant profits, promising 'quick' returns of 'between 60-85%'. In fact, the defendants controlled the software system that their trades were conducted on and manipulated the results of some trades to ensure customers lost their money.
The regulator said the call center in Israel functioned as a 'boiler room', a type of fraud that involves cold calling potential investors offering to sell them exotic financial products.
The CFTC further alleged that the Cartu brothers had set up two companies in Ireland to facilitate Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term for their own binary options brands as well as for other platforms belonging to different people. A company known as UKTVM Ltd. (UKTVM) was established in the UK to process credit card payments for BeeOptions.com and Glenridgecapital.com. At a later date, processing was carried out by a company called Greymountain Management, which was incorporated in Ireland and acquired credit card payments for binary brokers who were unable to obtain banking services.
From 2014 through to 2017, they received about $165 million from investors worldwide, including the US and Canada. Once the money was 'invested', the defendants usually refused to allow these clients to withdraw their money.
A Crackdown on Binary Fraud
Also charged in the same case is Ryan Masten from Texas, and his company BareIt Media, aka SignalPush, as well as All Out Marketing Limited, Blue Moon Investments, Ltd., and Orlando Union Inc., each of these, is an offshore entity owned and controlled by one of the Cartu brothers.
As was customary, sales staff at these companies lied about their names, location, titles, experience, and the fact that they made profits when the traders lost their balance.
“At the direction of the Cartu and Peretz brothers, the individual brokers soliciting U.S. customers falsely represented their financial expertise, compensation structure, physical location, and identity. These brokers also falsely claimed that the offered binary options transactions were profitable when the majority of customers lost money,” the CFTC further states.
The agency is seeking full restitution for the defrauded individuals, disgorgement of earnings from the fraud, civil monetary penalties, permanent registration and trading bans.