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Turkish authorities have jailed 15 more suspects in an expanding investigation into September’s fund scandal, bringing the total number of people remanded in custody to 103, including brokerage and portfolio management executives.
The suspects were among 22 people brought before an Istanbul court after being detained in the investigation. Seven others were placed under judicial control.
The scandal, which erupted after several investment funds failed to meet redemption requests in mid-September, prompted Türkiye’s Capital Markets Board (CMB) to order the liquidation of 131 funds over a period of up to six months.
The process affected over 455,000 investors, with the funds holding an estimated ₺936.3 billion ($19.1 billion) in combined assets at the time.
Prosecutors launched the latest operation after reviewing reports and written complaints submitted by Türkiye's Capital Markets Board (SPK).
Authorities issued detention orders for 31 suspects in connection with the transactions.
Among those jailed were Taha Cakmak, a former deputy governor of the Central Bank of the Republic of Türkiye (TCMB) and former general manager of Türkiye Sigorta, who resigned from his position this week following his detention, and Altinbas Holding executive Inan Altinbas.
The detainees also included executives and officials from A1 Capital Portfoy, Atlas Portfoy, Pardus Portfoy, Hedef Group companies and Hedef Portfoy, four of the seven portfolio companies managing the troubled funds, as well as brokerage firm Alnus Yatirim.
Investigators questioned the suspects over suspected irregularities involving shares of Isiklar Enerji ve Yapi Holding, Visne Madencilik, Odine Solutions and Tera Finansal Yatirimlar Holding.
Separately, authorities have detained Nusret Altinbas, owner of Altinbas Holding and Alnus Yatirim, who had been sought as a fugitive.
The broader investigation, which gathered pace in September, targets suspected market manipulation and irregular transactions involving 131 investment funds and shares of 26 companies.
Authorities have taken legal action against 404 people over suspected stock market manipulation and illicit gains, with 88 suspects jailed and 195 placed under judicial control, Justice Minister Akin Gurlek said on Oct. 21.
Following Saturday’s latest arrests, the number of suspects remanded in custody rose to 103, according to these figures.
Earlier arrests included Tera Yatirim Holding Chairman Emre Tezmen, executives Emre Alkin and Kerem Alkin, Tera Portfoy General Manager Alper Ozturk and Pusula Holding Chairperson Serdar Turhan.
Authorities have also frozen and seized assets belonging to some suspects and introduced a voluntary repayment mechanism to recover allegedly illicit gains and help compensate affected investors.
Turkish Parliament passed legislation paving the way for interim payments of up to ₺1 million to eligible investors in funds undergoing liquidation this week.
The mechanism is expected to cover about 390,000 investor accounts in funds subject to extraordinary liquidation.
Meanwhile, the Fund Coordination Board, established by the government in September to oversee the process, reported that liquidation procedures had been completed for 84 of the 131 funds initially targeted, leaving 47 still undergoing liquidation.
Authorities have distributed ₺49.7 billion ($1.1 billion) in cash and in-kind payments across 55,755 accounts.
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