Former Borsa Istanbul CEO Korkmaz Enes Ergun has been remanded in custody on charges of accepting bribes and participating in an organization formed to commit crimes. He was detained by police on October 31, and on November 3 a court ordered his arrest as part of the investigation into the investment fund scandal.
Ergun is not the chairman of the exchange, as initially reported, but its former CEO. Until a final court ruling is issued, the allegations against him remain claims made by the investigation.
433 suspects in the investigation
Justice Minister Akin Gürlek said the investigation now covers 433 suspects. Of these, 112 have been remanded in custody, 186 have been placed under judicial control, and arrest warrants have been issued for 38. On November 3, detention warrants were also issued for six more people, including a former deputy chairman of the Capital Markets Board.
„The investigation initially began with market participants, but reached a criminal organization that extends to the highest levels of the financial bureaucracy,“ Gürlek said. According to him, the alleged network operated through a „systematic bribery scheme“ that rendered the supervisory mechanisms ineffective.
Manipulated stocks and frozen assets
According to the minister, those involved in the scheme manipulated certain stocks, withdrew liquidity from the market and attempted to establish control over it. Gürlek described the alleged structure as a cartel and said the investigation was examining links between market participants, employees of financial institutions and other individuals.
Turkish authorities have imposed liens on the assets and bank accounts of 359 individuals and 111 legal entities. Around 30 billion Turkish lira in cash, real estate and shares has been returned through a voluntary restitution mechanism, the minister said.
The investigation began following reports and complaints concerning operations involving investment funds and the capital markets. In September, Türkiye’s Capital Markets Board ordered the liquidation of 131 funds, which Turkish media reported affected more than 455,000 investors.
Investigation continues
By October 30, a total of 97.3 billion Turkish lira had been paid out to nearly 250,000 investors. The authorities are urging those who received funds through alleged market manipulation to return them voluntarily, while continuing measures to freeze and seize assets.
Gürlek said the investigation would cover all links in the alleged structure, including individuals from the financial bureaucracy and political figures, without naming anyone specifically. Charges have been brought against individual suspects in the investigation, but final criminal liability will be determined by the court.
Sources: euronews.com, hurriyetdailynews.com, theprint.in