Turkish authorities have detained 15 people in an investigation into suspected manipulation of shares in listed savings-finance company Katılımevim, while prosecutors have frozen financial and asset transactions involving executives and officials linked to nine investment businesses.
The Istanbul Chief Public Prosecutor’s Office launched legal proceedings against 25 suspects in connection with transactions involving Katılımevim Tasarruf Finansman AŞ shares. Justice Minister Akın Gürlek said 15 suspects had been detained on 21 September, while efforts were continuing to locate the remaining 10. Turkish state news agency Anadolu said the investigation followed analysis of financial information obtained from the Financial Crimes Investigation Board, known as MASAK.
The investigation concerns suspected manipulation in the capital markets. The proceedings remain ongoing, and the detentions do not establish criminal liability. Prosecutors are examining financial transactions as they seek to identify any unlawful gains and determine responsibility for the suspected conduct.
The inquiry has also expanded beyond Katılımevim. Gürlek said financial and asset transactions involving executives and authorised officials connected with Pusula Finans Holding, Pusula Yatırım Menkul Değerler, Tera Yatırım Menkul Değerler, Tera Portföy Yönetimi, Hedef Holding, Hedef Portföy Yönetimi, Bulls Yatırım Menkul Değerler, Bulls Portföy Yönetimi and Ufuk Yatırım Yönetim ve Gayrimenkul had been frozen. The nine businesses did not immediately respond to Reuters requests for comment.
Banks, notaries, land registry authorities and MASAK have been instructed to prevent assets covered by the investigation from being transferred or reduced. Transactions involving board members, authorised signatories, their spouses and close relatives that could diminish relevant assets are also subject to monitoring and require prosecutorial clearance.
The detentions follow action by Turkey’s Capital Markets Board. On 17 September, the regulator filed criminal complaints against 38 people over alleged manipulation involving shares in Katılımevim, Gündoğdu Gıda and Destek Finans Faktoring. It also imposed two-year trading bans on the individuals concerned and on fund manager Pusula Portföy.
The enforcement action comes amid a wider liquidity crisis in Turkey’s investment-fund sector. Regulators have suspended trading and ordered the liquidation of numerous funds after investor withdrawals placed pressure on portfolios containing concentrated positions in relatively illiquid shares. Turkish authorities have also introduced liquidity measures intended to contain disruption in the wider market.
The legal significance extends beyond the suspected share manipulation itself. The combination of criminal proceedings, securities restrictions and asset-preservation measures shows how a market-abuse investigation can involve prosecutors, the securities regulator and financial-intelligence authorities at the same time.
It also highlights the potential reach of asset-preservation orders. The restrictions described by Gürlek extend beyond individual suspects to transactions involving company officials, authorised signatories and certain relatives where authorities believe movements of assets could undermine the investigation.
The Istanbul Chief Public Prosecutor’s Office is continuing the inquiry, while efforts remain under way to locate the 10 suspects who had not been detained. No convictions have been reported, and the allegations remain subject to the continuing criminal process.