ST. PETERSBURG, Russia — Russian law enforcement authorities have detained Israeli-Canadian racecar driver and entrepreneur Joshua Cartu, 45, who is wanted by U.S. authorities on charges of defrauding investors of millions of dollars through an illegal online stock trading scheme, according to local media reports on Tuesday.
Cartu was apprehended at St. Petersburg’s Pulkovo International Airport on Monday by the Interior Ministry’s Interpol bureau, the local news website 47news.ru reported, citing an anonymous police source.
The businessman is expected to be held for up to 48 hours while U.S. officials confirm that he is under investigation for the alleged fraud. If confirmation is received, Russian authorities will seek a court order to formally place Cartu under arrest.
“If our foreign colleagues don’t send confirmation of their investigation and documents for [Cartu’s] arrest within 48 hours, we’ll have to let him go,” the source was quoted as saying.
The United States and Russia do not have an extradition treaty, which could complicate Cartu’s potential transfer to U.S. custody. However, Russia has detained and handed over individuals wanted by the U.S. in certain high-profile cases in the past.
Joshua Cartu is accused by U.S. authorities of being involved in a vast fraudulent scheme that operated through online investment platforms between 2013 and 2018.
The U.S. Commodity Futures Trading Commission (CFTC) charged Cartu, along with his two brothers and their business partners, with defrauding customers of $165 million through illegal binary options trading.
Binary options are financial products in which investors are promised high returns based on a simple “yes or no” prediction of how a market will move. However, these schemes have been widely criticized for being deceptive and leading to significant losses for unsuspecting investors.
In March 2024, a Texas court found Jonathan Cartu, Leeav Peretz, Nati Peretz, and their company Blue Moon Investments Inc. liable for fraud in connection with their involvement in the illegal binary options trading scheme. The court ordered them to pay a staggering $204 million in civil monetary penalties and restitution to their victims.
The Cartu brothers’ alleged fraudulent activities have also drawn attention in Canada. In 2020, the Ontario Securities Commission (OSC) accused Joshua Cartu and his brothers of pocketing $233 million in connection with similar global binary options-related schemes. The schemes promised investors returns “between 60-85%,” but instead left many victims financially devastated.
The victims of the Cartu brothers’ schemes were said to have included retirees, disabled veterans, struggling parents, and early-career millennials, according to the Canadian magazine Toronto Life.
The magazine also reported that Joshua Cartu, who frequently flaunted his lavish lifestyle on social media, owned a fleet of Ferraris and regularly paid to participate in elite car races and rallies for affluent supercar owners.
As Russian authorities await confirmation from the U.S. regarding the charges against Cartu, the businessman’s future remains uncertain.
His detention adds to a growing list of legal woes, as authorities in multiple countries continue to pursue justice for the victims of his alleged fraudulent schemes.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members