Carto's money troubles stem from his loss in court against the Holocaust-denying Institute for Historical Review (IHR). In March 2002 his home in Escondido, California, dubbed the "West Coast office of Liberty Lobby," was auctioned off to IHR's parent corporation for a fraction of its value. In March 2003 an arrest warrant was issued for Carto by the Swiss legal authorities, on charges of "abuse of trust, disloyal management and money laundering" relating to his disposition of the estate of former IHR supporter Jean Farrel, a resident of Switzerland. 

Carto continues to be listed as "publisher" on the masthead of the Holocaust-denial magazine The Barnes Review.  He also plays a role in publishing American Free Press, a conspiratorial anti-"Zionist" tabloid that replaced Carto's earlier publication, The Spotlight.  Shortly after September 11, 2001, he wrote two pieces in American Free Press alleging Israeli collusion in the terrorist attacks (see: ADL Report, Unraveling Anti-Semitic 9/11 Conspiracy Theories).  In March 2004 Carto wrote an editorial in The Barnes Review, in which he praised Adolf Hitler and described the Holocaust as a "vicious canard." 

In June 2003, Carto hosted a Barnes Review conference that drew over one hundred supporters. In March 2004 he spoke on the topic "Is the Major Media Controlled?," at the Health and Freedom Rally in Irvine, California, sponsored by Freedom Law School,  which featured extremists from across the spectrum including Hutton Gibson (Mel Gibson's father), and tax protestors such as Joe Banister and Robert Schulz. In May 2004 Carto was a prominent speaker at a conference in New Orleans sponsored by David Duke, which had 250 participants, including leaders of Stormfront, the National Alliance, the British National Party, and the right-wing attorney Edgar Steele.  He also spoke at Duke's 2005 conference, and twice was a guest on Duke's radio program broadcast from the Stormfront Web site.