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