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Turkish authorities detained five additional suspects, including the chairmen of two financial holding companies, on Saturday as part of an expanding criminal investigation into alleged manipulation of investment funds, prosecutors said.
Serdar Turhan, identified as chairman of Pusula Holding's board and a manager at Pusula Portfoy, and Emre Tezmen, chairman of Tera Yatirim Holding, were among those detained, along with three Tera Yatirim executives: Alper Ozturk, Emre Alkin and Kerem Alkin.
The Istanbul Chief Public Prosecutor's Office, which is leading the probe, had already ordered the detention of Turhan and Ozturk separately before the wider group was taken into custody.
The five new detentions add to a case that has been building for more than a week. Four suspects were formally arrested last week, including Muhammed Yariz, chairman of Pusula Portfoy's board, and Altunc Kumova, chairman of Destek Yatirim's board.
Separately, Türkiye's Capital Markets Board, known by its Turkish initials SPK, had flagged 51 suspects to prosecutors, all of whom were placed under travel bans and asset freezes to prevent them from moving their holdings out of reach of investigators.
Justice Minister Akin Gurlek said the case originated from a referral made in August by the Anti-Money Laundering Crimes Investigation Bureau, which asked the Capital Markets Board for authorization to open a criminal inquiry.
Gurlek said the investigation centers on allegations that manipulative transactions were carried out in a portion of the fund and equity markets, in violation of Article 107 of Türkiye's Capital Markets Law.
He said four suspects, including fund board chairmen and members, had been arrested, while 51 others were subjected to travel bans, with asset freezes imposed on their accounts and holdings to prevent them from being moved.
The minister also said a separate investigation opened on the Istanbul prosecutor's own initiative led a local criminal court to order the blocking of access to 246 social media accounts accused of spreading speculative content designed to sow fear and panic among investors; the order was forwarded to Türkiye's Cybersecurity Directorate for enforcement.
In a related case handled by the Bakirkoy Chief Public Prosecutor's Office, legal action was launched against account holders accused of using social media to manipulate capital markets, resulting in 16 arrests.
Gurlek described the target of the broader crackdown as "malicious individuals and structures" that used Ponzi-like methods to target ordinary citizens' savings through misleading guidance for unjust profit.
He said judicial authorities were taking care to protect honest investors and the market's normal functioning while pursuing the cases, and pledged continued legal action against anyone manipulating markets, misleading investors or attempting to move proceeds of crime out of reach.
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The case, widely referred to in Türkiye as the "fund investigation," first drew public attention on September 9, when Tera Yatirim Menkul Degerler announced it had begun talks with existing shareholders to acquire a group of companies tied to Pusula Finans Holding.
The target companies included Pusula Finans Holding's own shares as well as those of its subsidiaries Pusula Portfoy Yonetimi, Pusula Yatirim Menkul Degerler and Katilim Evim Tasarruf Finansman.
A day later, the two sides announced they had reached agreement on the basic commercial and financial terms of the deal.
On September 13, Pusula Finans Holding's board accepted the resignations of board members Ahmet Ozcan and Serdar Turhan.
The following day, as the investigation into companies including Pusula Finans Holding and Katilimevim got underway, Pusula Portfoy board chairman Muhammed Yariz gave testimony to prosecutors in Bodrum.
He was arrested after being referred to court later that Monday.
On September 17, Emlak Katilim Bankasi announced it had begun talks to acquire Katilimevim Tasarruf Finansman and Birevim Tasarruf Finansman.
The Capital Markets Board separately ordered the liquidation of 131 funds managed by seven portfolio management companies.
Under the decision, trading was halted and some funds ordered liquidated for all investment funds founded by Tera Portfoy Yonetimi, Pusula Portfoy Yonetimi, Hedef Portfoy Yonetimi, Atlas Portfoy Yonetimi, A1 Portfoy Yonetimi, Pardus Portfoy Yonetimi and Bulls Portfoy Yonetimi whose participation shares were traded on Türkiye's Electronic Fund Trading Platform, known as TEFAS.
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