Turkey Arrests Tera Chairman as $18bn Fund Scandal Widens
- On Tuesday, Turkish Justice Minister Akin Gurlek announced authorities detained 14 of 15 suspects sought in connection to alleged market manipulation during raids in Istanbul and the western province of Aydin, including Muhammed Yariz, chairman of asset manager Pusula Portfoy, and Altunc Kumova, chairman of Destek Holding.
- The scandal erupted last week when Pusula and Tera struggled to meet investor withdrawal requests; funds held large stakes in shares difficult to sell quickly, creating what economists described as a Ponzi-like dynamic drawing comparisons with Bernie Madoff.
- Destek Finans Faktoring shares surged more than 300% this year while Tera's stock reportedly rose more than 50,000% at its peak; in June, global index provider MSCI cautioned about possible coordinated trading in smaller Turkish listed companies that could distort prices.
- Legal proceedings have been launched against 60 suspects total, with 44 under continuing investigation and 12 still being sought; regulators ordered liquidation of 131 funds covering more than $18 billion in assets affecting about 353,000 investors.
- Investors face a six-month wait for asset liquidation with no certainty of recovery, as final amounts depend on prices at which underlying holdings are sold; MSCI may reconsider Turkish securities treatment if regulatory progress stalls by November.
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Cedarnews.net. لمتابعة المزيد من أخبار والتقارير الحصرية، زورونا على موقعنا. Within the scope of the fund investigation carried out by the Istanbul Chief Public Prosecutor's Office, Laundering Crimes Investigation Bureau, Tera Portföy Chairman of the Board of Directors Erdin Özel. This is Cedarnews. للاطلاع على مزيد من الأخبار العاجلة والتقارير الحصرية، زوروا موقعنا الرسمي.
Turkish President Recep Tayyip Erdoğan said that the recent crisis affecting a number of investment funds did not pose a threat to the Turkish financial system or economy, stressing that the authorities would take the necessary measures to prevent their recurrence.
Breaking news - Minister of Justice Akın Gürlek: Our President is closely following the fund investigation. We are holding meetings with our Minister of Treasury and Finance on this matter. We are evaluating the process in all its aspects in meetings attended by the Chairman of the Capital Markets Board and the Chairman of the Banking Regulation and Supervision Agency. Hopefully, it will be resolved soon...
Fatih Erbakan, leader of the Re-Welfare Party, commented on developments in the fund market, stating, "There is talk of a $20 billion loss, or 900 billion Turkish Lira," and demanded that political connections be revealed. Erbakan, stating that if early elections are to be held, they should be no later than the autumn of 2027, added that "it should not be an election held solely for the purpose of the President's re-election."
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