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Former Turkish Family and Social Policies minister Fatma Betul Sayan Kaya was arrested early Friday as part of an ongoing probe over September's fund scandal, facing charges of violating capital markets legislation and membership in a criminal organization.
A criminal court of peace ordered Kaya's pretrial detention after prosecutors questioned her over suspicious transactions involving shares of Ozata Denizcilik (OZATD), one of the companies that delivered unusually high returns with alleged manipulation by some investment funds, according to the Istanbul Chief Public Prosecutor's Office.
The broader probe followed a market rout that emerged in mid-September after several investment funds failed to meet investor redemption requests.
The turmoil prompted the Capital Markets Board (SPK) on Sept. 17 to order the liquidation of 131 investment funds over six months to contain fallout, with over 455,000 investors caught up in the process and the holdings' combined asset base estimated at ₺936.3 billion ($19.1 billion) at the time.
Kaya and her husband, Ilyas Kaya, came under scrutiny over their investments after the scandal erupted.
According to publicly reported figures, the couple invested a combined ₺163.1 million ($3.3 million) and withdrew approximately ₺2.1 billion, generating an alleged profit of around 1,188% before the turmoil.
Authorities subsequently froze their assets and bank accounts. The couple later applied for a voluntary repayment mechanism established by the SPK, transferring investment gains that exceeded their original principal into an account overseen by the Savings Deposit Insurance Fund (TMSF), after prosecutors authorized it.
Kaya resigned as an AK Party deputy chair and left her other party positions in late September after the allegations emerged.
In a detention request, Kaya was accused of purchasing Ozata Denizcilik shares in April 2026 and selling them on Sept. 16, one day before authorities ordered the liquidation of 131 investment funds.
According to the prosecution's submission to the court, the shares were not sold through regular market trading. Instead, they were transferred directly to Tera Yatirim Menkul Degerler, which deposited the proceeds into Kaya's account on the same day.
Prosecutors highlighted that the transaction bypassed the standard T+2 settlement period, under which proceeds normally reach an investor's account two business days after a sale. The transfer instead followed a T+0 arrangement, allowing the funds to become available immediately.
The filing also pointed to Kaya's contacts with Tera Group executives, one of the leading portfolio management companies that has been probed, including arrested Chairman Emre Tezmen, as well as her investment account with the group.
A SPK report found indications that Kaya had access to nonpublic information capable of affecting the share price or influencing investment decisions, according to the prosecution.
The investigation also identified substantial OZATD purchases by Tera Group companies and investment funds, based on transaction records and disclosures on Türkiye's Public Disclosure Platform (KAP).
In its detention request, the prosecution argued that the timing and structure of Kaya's transaction, combined with her contacts within Tera Group, pointed to prior knowledge of the stock's price movements and the impending fund liquidation decision.
Separately, former Capital Markets Board (SPK) chairman Ibrahim Omer Gonul was released under judicial control, with a travel ban, on the same day after appearing before a court for a second round of questioning as part of the broader investigation.
Gonul was first questioned as a suspect on Sept. 30 over allegations that he failed to properly oversee investment funds during his tenure as the country's top capital markets regulator, a position he held from April 2022 to April 2026.
The Istanbul Chief Public Prosecutor's Office subsequently sought authorization to investigate him on suspicion of abuse of office, arguing that there were indications he had failed to fulfill his statutory inspection, supervision and assessment responsibilities.
Treasury and Finance Minister Mehmet Simsek granted permission for the investigation on Oct. 14, following a preliminary review by the ministry's inspection board.
The investigation has also reached other senior figures in Türkiye's financial regulatory institutions, including former Borsa Istanbul CEO Korkmaz Enes Ergun, who was arrested on bribery charges.
Erkan Kilimci, a former central bank deputy governor, was also arrested in September, while former SPK deputy chairman Enver Usca and BDDK Fourth Implementation Department head Mustafa Alper Tas were among six people detained earlier this week, alongside three other former SPK officials and a Tera Holding executive.
Justice Minister Akin Gurlek reported earlier this week that the number of suspects in the wider probe into capital market irregularities had reached 433, including 112 people remanded in custody, 186 placed under judicial control and 38 fugitives wanted under arrest warrants.
Authorities have also frozen assets and blocked bank accounts belonging to 359 individuals and 111 legal entities, Gurlek added.
"The network that infiltrated our high-level oversight mechanisms has become quite evident as of today," the minister said, noting that statements from suspects had brought additional names into the investigation.
Legal proceedings have also been initiated or are underway against bureaucrats, individuals, companies and political figures allegedly linked to the suspected criminal network, he noted.
Speaking to reporters aboard his return flight from South Korea on Thursday, President Recep Tayyip Erdogan vowed that everyone involved in capital market manipulation would be held accountable, saying the government was closely monitoring the investigation.
"People you would never have expected have become involved in these activities. The judiciary is identifying them and taking the necessary action," Erdogan said.
"Whoever has made unfair gains, manipulated capital markets or facilitated such activities will be held accountable," he remarked, adding that bribery, irregularities and abuses were being uncovered one by one.
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