Tag: Akın Gürlek

  • Turkey jails former minister in investment fund scandal

    Turkey jails former minister in investment fund scandal

    A former Turkish minister and senior ruling party official was jailed pending trial Friday as part of an investigation into a multibillion-dollar investment fund scandal, Turkey’s state-run Anadolu news agency reported.

    An İstanbul court ordered Fatma Betül Sayan Kaya jailed on charges of violating capital markets law and belonging to a criminal organization, the agency said.

    Kaya served as family minister from 2016 to 2018 and until recently was a deputy chair of President Recep Tayyip Erdoğan’s ruling Justice and Development Party (AKP).

    She stepped down on September 26 following allegations by the main opposition New Party that she had profited from an investment scandal that had emerged earlier that month.

    A New Party lawmaker sought clarification over allegations that she and her husband had made millions through share transactions before the scandal broke, raising questions about insider trading.

    She later left the ruling party.

    The scandal erupted in mid-September, prompting an investigation into allegations of market manipulation affecting the savings of nearly 500,000 investors.

    Justice Minister Akın Gürlek announced Tuesday that 112 people had been jailed pending trial in the investigation, adding that investigators had uncovered a “comprehensive criminal network” that infiltrated the highest levels of Turkey’s financial markets.

    © Agence France-Presse

  • Turkish justice minister says ‘crime network’ behind fund scandal

    Turkish justice minister says ‘crime network’ behind fund scandal

    Investigators probing a multibillion-dollar investment fund scandal have uncovered a “comprehensive criminal network” that infiltrated the highest levels of Turkey’s financial markets, Justice Minister Akın Gürlek said Tuesday.

    His remarks came days after a court ruled for the arrest of the former İstanbul stock exchange boss as part of a far-reaching probe that began in mid-September into allegations of widespread market manipulation affecting the savings of nearly half a million investors.

    The scandal has dominated the headlines for weeks, raising uncomfortable questions about who might have profited and putting pressure on President Recep Tayyip Erdoğan’s ruling Justice and Development Party (AKP), with one of its top members resigning following allegations about her investment activities.

    “The structure is not limited to a simple stock market scam, there is a comprehensive criminal organization involved,” Gürlek told NTV.

    “Although the investigation initially began with market actors, it has now revealed a criminal organization that extends into the upper levels of the financial bureaucracy,” he said.

    “Those within the mechanism that controls the money rendered the oversight mechanisms ineffective by establishing a system of bribery.”

    By forming a “cartel,” they sought “to siphon off liquidity from the market by manipulating certain shares and to take control of the market,” Gürlek added.

    Investigators were looking into 433 suspects and probing “all links within the structure, which extends to the very foundations of the financial system and the upper echelons of the capital markets.”

    So far, 112 suspects have been jailed pending trial, while another 186 have been granted conditional release, and 38 others were still being sought, Gürlek said. Among them were “political figures linked to criminal organizations within our fund market,” he said, without giving further details.

    On Saturday Korkmaz Enes Ergun, head of the Borsa İstanbul stock exchange, was detained on suspicion of “membership in an organization established to commit crimes” and accepting bribes. He was arrested on Tuesday on bribery charges.

    Two weeks ago the head of Turkey’s SPK capital markets regulator was sacked by presidential decree just days after prosecutors began investigating his predecessor in connection with the affair.

    At the same time the deputy finance minister also resigned after his son-in-law was jailed pending trial in the fund scandal.

    © Agence France-Presse

  • Turkey detains 32 people over alleged links to Gülen movement

    Turkey detains 32 people over alleged links to Gülen movement

    Turkish authorities have detained 32 people in operations across several provinces over alleged links to the faith-based Gülen movement, Justice Minister Akın Gürlek said Wednesday.

    The operations were part of three investigations launched by prosecutors in Eskişehir and İzmir provinces that targeted 34 people. It was not immediately clear whether any of the detainees had been released or brought before a court.

    In Eskişehir, authorities detained nine of the 10 people included in an investigation into payments made through a US-based company allegedly linked to the Gülen movement. Prosecutors launched the investigation on suspicion that the payments, which were related to food products exported from Turkey, were connected to the movement.

    Turkish President Recep Tayyip Erdoğan has targeted the faith-based Gülen movement, inspired by Muslim cleric Fethullah Gülen, who died in 2024, since corruption investigations in December 2013 implicated Erdoğan as well as some members of his family and inner circle. He dismissed the probes as a Gülenist conspiracy and designated the movement as a terrorist organization in May 2016, intensifying a sweeping crackdown after a coup attempt in July of the same year that he accused Gülen of orchestrating. The movement denies involvement in the coup attempt or any terrorist activity.

    In a separate investigation conducted by the İzmir Chief Public Prosecutor’s Office, authorities detained 21 people across four provinces over allegations that they were involved in the Gülen movement’s ongoing activities.

    Prosecutors said the detainees’ names appeared in digital materials seized from people allegedly linked to the movement. Police also seized digital materials and documents during the raids.

    In a third investigation also led by prosecutors in İzmir, authorities detained two people in İzmir and Aydın over allegations of membership in a terrorist organization. A third person included in the investigation was reported to be abroad.

    Prosecutors cited ByLock messages, records from the now-closed Bank Asya and phone records as evidence of alleged links to the movement. ByLock is an encrypted messaging app once widely available on Apple’s App Store and Google Play that Turkish authorities claim was used as a secret communication tool by Gülen supporters.

    In a landmark 2023 ruling in Yüksel Yalçınkaya v. Türkiye, the European Court of Human Rights (ECtHR) found that convictions based on ByLock use and other alleged Gülen-linked activities, such as having an account at a movement-affiliated bank, violated the rights to a fair trial, no punishment without law and freedom of association.

    Gürlek said the government would continue operations against the Gülen movement and would not tolerate any of its activities.

    According to the latest figures from the justice ministry, more than 127,000 people have been convicted of alleged links to the movement since 2016, with 10,485 still in prison and legal proceedings ongoing against 83,404 individuals.

    This article is republished from the Stockholm Center for Freedom.