Israeli-Canadian Racing Driver Detained in Russia Over U.S. Fraud Allegations

Joshua Cartu, an Israeli-Canadian racer, was detained in St. Petersburg by Russian authorities. He is wanted in the U.S. for a multimillion-dollar fraud scheme involving binary options trading. His arrest comes amid high tensions between Russia and the West, highlighted by recent prisoner swaps.

In a dramatic turn of events, authorities in St. Petersburg arrested Israeli-Canadian racing car driver Joshua Cartu, who is wanted in the United States for his alleged involvement in a large-scale fraudulent online stock trading scheme, according to reports from the city's court system on Wednesday evening.

The court noted that Cartu, along with his brothers David and Jonathan and multiple other individuals, orchestrated a binary options trading scam between 2013 and 2018, which purportedly defrauded investors of millions. This follows a statement by the U.S. Commodity Futures Trading Commission in May 2020.

Cartu was apprehended on August 19 at Pulkovo airport and identified as a dual citizen of Israel and Canada. The court extended his detention by 72 hours on Wednesday. It remains unclear when he entered Russia. The embassies of Canada and Israel did not return requests for comments.

The court underscored the severity of potential charges under Russia's fraud statutes, with penalties of up to 10 years' imprisonment. The lack of an extradition treaty between Moscow and Washington complicates the case.

Cartu is also implicated in additional fraud allegations within Canada. His arrest comes shortly after significant prisoner exchanges between Russia and Western countries, including the United States.

(With inputs from agencies.)