More than 18 billion Turkish Liras ($360 million) has been returned by 37 people as part of a widening investigation into alleged illicit gains from investment funds that left hundreds of thousands of investors facing losses.
The Istanbul Chief Public Prosecutor’s Office has detained 120 people so far, including company executives and former public officials. The latest high-profile development came on Oct. 31, when Borsa Istanbul General Manager Korkmaz Enes Ergun was detained on suspicion of membership in a criminal organization and bribery. Deputy General Atila Türeli has been appointed acting head in place of Ergun.
The probe stems from allegations that certain investment funds manipulated shares through coordinated trading, generating extraordinary returns before a liquidity crisis triggered mass withdrawal requests and the collapse of several funds in September.
Authorities are examining 131 funds involving 455,758 investors, while tracing transactions and attempts to recover allegedly unlawful profits. Initial findings indicated that 214 individuals and companies had made nearly 188 billion liras in illicit gains from three funds.
Those returning money include former minister Fatma Betül Sayan Kaya and her husband. Meanwhile, Takasbank General Manager Yunus Arıncı was released under judicial supervision, including a travel ban.
