Defrauded investors take Greymountain Management to court over alleged binary options scam

Maria Nikolova

The investors claim that they lost about €4.1 million in total because the software system the trades were conducted on was rigged.

The volume of legal action against binary options fraudsters is growing. The latest such action has been launched against an Ireland-registered entity – Greymountain Management. According to a report by The Times, a group of investors have brought an action against the firm at the High Court.

The list of defendants includes the now-defunct firm, as well as its four directors: David and Jonathan Cartu, from Israel, and Ryan Coates and Liam Grainger, Greymountain’s Dublin-based directors.

The investors allege that the software system their trades were conducted on was rigged in order to for them to lose their investments. In total, the losses are said to be around €4.1 million.

The investors, who come from the United States, Canada, Singapore, the United Arab Emirates and the UK, assert that they were persuaded by the defendants to open binary accounts via misleading claims that they would make big profits. According to the victims, the defendants had conspired to defraud them by misrepresenting the location, qualifications and identity of brokers they had interacted with.

Mr Grainger, of Charlemont, Griffith Avenue, Dublin, and Mr Coates, of Hogan Square in the city, are alleged to have run Greymountain for the purpose of the purported scam, and acted as agents for the Cartu brothers, who were shadow directors of the company.

The plaintiffs are suing the firm for deceit, breach of contract, breach of duty misrepresentation and conspiracy to defraud them. They are also seeking damages.

There has not been much information about binary options on the website of Central Bank of Ireland. There are a couple of warnings taken from the European Supervisory and Market Authority (ESMA). Overall, however, this investment product appears not to be at the center of regulatory attention in Ireland.

Let’s recall that Greymountain Management went into liquidation last year following an investiation into the firm’s activities by Irish regulators.

FinanceFeeds has earlier researched the activities of entities like Greymountain, including the firm itself. You can read the detailed report on how such entities are cutting and running here.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<