Two more detained as Türkiye’s fund probe widens

ISTANBUL

Turkish police detained two more suspects on Sept. 21 in a widening fund market investigation after investigators identified money transfers linked to Pusula Portföy Chairman Muhammed Yarız, who has been remanded in custody.

Selim Dağbaşı allegedly transferred $14.5 million to Yarız’s Swiss bank account on May 25, according to Turkish media reports.

Investigators also identified two transfers totaling 970.36 million Turkish Liras from Hamza Kablan to Yarız on Sept. 4.

The detentions followed an operation earlier that day targeting suspected manipulation of shares in Katılımevim Tasarruf Finansman (KTLEV).

Justice Minister Akın Gürlek said proceedings had been launched against 25 suspects, with 15 detained and efforts continuing to locate the remaining 10.

Prosecutors said a Sept. 17 Capital Markets Board (SPK) inspection report had identified suspected market manipulation involving the company’s shares.

Gürlek also said money and asset transactions had been frozen for executives and officials connected to nine companies, including Pusula Finans Holding, Tera Yatırım, Hedef Holding and Bulls Yatırım.

Institutions were instructed not to process transactions reducing the assets of board members, authorized signatories, their spouses and first-degree blood relatives without informing and consulting prosecutors.

The restrictions aim to prevent assets under investigation from being concealed, transferred to third parties or depleted, the minister said.

Meanwhile, the SPK extended the liquidation period for affected funds from three months to six in a Sept. 20 decision, citing their portfolio structures and market conditions.

The regulator had ordered 131 funds into liquidation following payment difficulties at several asset managers.

İşbank and state-owned Ziraat Bank were assigned to oversee the process.

In a Sept. 21 clarification, the SPK said the extension was intended to allow assets to be sold under suitable conditions.

Liquidation could finish before the six-month deadline, it said, adding that the other liquidation and payment rules remained unchanged.

Borsa Istanbul’s benchmark BIST 100 index recovered from an intraday drop below 13,000 to close Sept. 21 at 13,337.69, up 0.40 percent.