Investors claim they lost €4.1m in Binary Options scam 

Binary scam

A group of investors who claim they lost millions of euro in an electronic trading scam have brought a High Court damages action against an Irish-registered firm and Irish- and Israeli-based directors.

They have sued Greymountain Management Ltd, which is in liquidation, and its four directors, Israel-based brothers Jonathan and David Cartu and Dublin-based Ryan Coates and Liam Grainger.

The investors claim they believed they were investing in a complex trade known as binary options, when in fact the software system their trades were conducted on was rigged to ensure they lost their money.

Also known as ‘all or nothing options’, binary options are a product where the investor gets either a payoff of some fixed monetary amount if successful or nothing at all from their investment. The outcome of the investment depends entirely on the outcome of a yes/no proposition.

The yes/no proposition depends on whether the price of a particular asset will rise above or fall below a specified amount at a specified date and time.

Binary options are banned in most jurisdictions due to the high risk and fraud.

In what is understood to be one of the first cases of its type, the investors claim they lost about €4.1m in total from investing in binary options either indirectly or through third parties directly with Greymountain Management, which it is claimed provided services to binary options providers.

The investors, who come from the US, Canada, Singapore, UAE, and Britain claim they were induced by the defendants to open binary accounts with false claims that they would earn significant profits.

The investors made payments to Greymountain, which it is alleged played a pivotal role in the scheme.

Instead of acting honestly it is alleged the defendants conspired to defraud them. It is claimed the defendants misrepresented the location, qualification, and identity of brokers and advisers with whom the investors interacted.

The investors, it is alleged, were told the brokers and advisers would act in their interests, generate profits for the investors, and earn commissions on profits earned from their investments.

The brokers and advisers’ objectives, it is claimed, was to cause harm to investors.

They claim the software systems upon which the trades were conducted and executed were not legitimate and transparent and were rigged to ensure the investors lost their money.

The defendants allegedly manipulated the software systems in a way to induce investors to invest additional money on top of their original investment, before engaging in fraudulent devices to ensure they lost money.

It is claimed that the investors were directed to a website operated by the defendant that contained false testimonials and bogus descriptions of historical returns.

It is alleged the directors used Greymountain as a device to facilitate the binary options trading scam.

It is claimed Mr Grainger, of Charlemont, Griffith Avenue, Dublin 9, and Mr Coates, Hogan Square, Hogan Place, Dublin 2, operated and managed Greymountain for the purpose of the alleged scam, and acted as agents for the Cartu brothers who were shadow directors of the company.

In their action, the investors seek damages for deceit, breach of contract, breach of duty misrepresentation, and conspiracy to defraud the plaintiffs.

Source: Irish Examiner – Investors claim they lost €4.1m in e-scam

3 Responses to Investors claim they lost €4.1m in Binary Options scam

  1. Nick

    I read about a lot of bad and life shattering comments. I just want to implore people to be careful. There are a lot of fake brokers out there and real ones to. There are also fake recovery agents and real ones. Most are out to get your money while some are really out to help you get back on your feet. I am a living witness. You can reach me on my gmail at nick.whiteley77 or on Facebook or Quora as Nick Whiteley.

  2. toby gray

    Most binary options companies out there are fraudulent. They are all scams. I have been a victim of their activities. I invested about $480,000 and when i wanted to withdraw after some weeks, I was unable to reach their contact numbers or emails with which we stayed in touch. I assumed they were having some maintenance routing check, as that had happened in the past. After some weeks, I was contacted again by them and was asked to invest which i refused and told them i wanted to withdraw my money. After this, i didn’t hear from them again. At this point, I started to feel like i had been duped. I was lost and shattered as i had lost most of my savings. I was depressed for about 4 months. I was too ashamed to tell anyone about it, not even my children. I finally summoned the courage to tell my friend who came to visit me in the UK from New Zealand. He told me about a firm which specializes on helping get money back called fund Recovery. I contacted them and was guided to recovering most of my money. I was a great feeling to get some of my money back, as i had given up all hope.You can also contact him via
    Email-Fundrecovery04 AT GMAIL DOT COM….

  3. Bill

    I invested $2800 with Glenridge Capital who is a part of Grey Mountain. After about three months I could not contact them or get any response. Is it possible to get in on the fraud case?


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