Business · Companies · 4 hrs ago
Turkey fund probe recovers more than $360 million
Turkey’s investigation into alleged investment-fund wrongdoing has recovered more than $360 million from 37 people.
The probe in Istanbul involves 131 funds and 455,758 investors, many of whom face losses or are waiting for repayments.
Investigators say coordinated trading may have manipulated shares to generate unusually high returns.
A liquidity crisis then led to mass withdrawal requests and the collapse of several funds in September.
Authorities have detained 120 people, including company executives and former public officials; Borsa Istanbul General Manager Korkmaz Enes Ergun was detained on Oct.
31 on suspicion of criminal-organization membership and bribery.
The investigation has also drawn attention to people with political ties, including former minister Fatma Betül Sayan Kaya and her husband, who returned money.
Authorities are tracing transactions and seeking to recover alleged unlawful gains.
More than 18 billion Turkish liras, or about $360 million, has been returned by 37 people in an expanding investigation into alleged illicit gains from investment funds.
The Istanbul Chief Public Prosecutor’s Office has detained 120 people, including company executives and former public officials.
Authorities are examining 131 funds involving 455,758 investors after alleged share-price manipulation and a liquidity crisis led to losses and the collapse of several funds.
Initial findings indicated that 214 individuals and companies had made nearly 188 billion liras in illicit gains from three funds.
The investigation has also drawn in political figures, including former minister Fatma Betül Sayan Kaya and her husband, who are among those returning money.
- Who
- The Istanbul Chief Public Prosecutor’s Office is investigating people suspected of illicit gains from investment funds. Thirty-seven people have returned money.
- What
- More than 18 billion Turkish liras, or about $360 million, has been returned as part of the probe.
- When
- The probe has been under way since the fund scandal emerged in mid-September. The latest high-profile detention reported was on Oct. 31.
- Where
- Istanbul, Türkiye.
- Why
- Authorities are investigating allegations that funds manipulated shares through coordinated trading, generating extraordinary returns before a liquidity crisis and fund collapses.
Investigators and critics
Accused officials and other figures
Investment activity
Investigators and critics
The investigation concerns allegations that some funds manipulated shares and generated illicit gains.
Accused officials and other figures
Two serving ministers denied investing in the allegedly fraudulent funds.
Political allegations
Investigators and critics
Opposition figures and media have raised allegations involving people connected to the governing AKP.
Accused officials and other figures
The two ministers denied the allegations that they invested in the funds.
The investment-fund scandal emerged in Türkiye.
The market collapse cited in the investigation occurred.
Fatma Betül Sayan Kaya resigned as AKP vice-president after allegations that she and her husband profited by selling fund positions before the collapse.
Two journalists were arrested and two others placed under judicial supervision over their writing about the case.
Press reports said the assets and bank accounts of Fatih Erdogan, husband of AKP lawmaker Asuman Erdogan, had been frozen.
Borsa Istanbul General Manager Korkmaz Enes Ergun was detained on suspicion of membership in a criminal organization and bribery.
- Repayments
- More than 18 billion Turkish liras, or about $360 million
- People who returned money
- 37
- Detentions
- 120 people
- Funds under examination
- 131 funds involving 455,758 investors
- Initial estimated gains
- Nearly 188 billion liras from three funds, attributed to 214 individuals and companies