Israeli-Canadian Racer Arrested in Russia Over U.S. Fraud Charges

Joshua Cartu, an Israeli-Canadian racing car driver, has been detained in St. Petersburg. He is wanted by the United States for alleged large-scale fraud in an illegal online stock trading scheme. The St. Petersburg court extended his detention by 72 hours. Cartu, along with his brothers, is accused of operating a fraudulent binary options trading scheme.

Police in St. Petersburg have detained Israeli-Canadian racing car driver Joshua Cartu, wanted by the United States for alleged large-scale fraud in an illegal online stock trading scheme, the city's court system announced on Wednesday evening.

Joshua Cartu, alongside his brothers David and Jonathan, is accused of running a fraudulent binary options trading scheme from 2013 to 2018 that defrauded investors of millions. The St. Petersburg court service said Cartu was detained on Aug. 19 at Pulkovo airport. Identified as a citizen of Israel and Canada, he was said to be "wanted by the United States of America." It is unclear when Cartu arrived in Russia.

The court extended his detention by 72 hours on Wednesday. A spokesperson for Global Affairs Canada acknowledged Cartu's arrest and said Canadian officials had offered consular assistance. The Israeli embassy did not respond to requests for comment. The U.S. Commodity Futures Trading Commission had labeled the scheme as fraudulent in a May 2020 statement.

The court noted Cartu is unemployed, lacks a permanent residence in St. Petersburg, but holds a foreign passport that might help him evade extradition. There is no extradition treaty between Moscow and Washington. Cartu also faces fraud charges in Canada for a similar scheme. His arrest comes shortly after a significant U.S.-Russia prisoner swap.

(With inputs from agencies.)