By Bosphorus News Economy Desk
Türkiye has frozen the assets of 46 legal entities, 18 investment funds and 42 individuals as prosecutors trace money movements made before the September fund crisis.
Justice Minister Akın Gürlek said investigators began with the largest withdrawals made between July 1 and September 16. Courts also imposed travel bans on 37 suspects who had not previously been subject to judicial measures.
The İstanbul Chief Public Prosecutor's Office is investigating suspected formation of or membership in a criminal organization, aggravated fraud, laundering of criminal proceeds and violations of Türkiye's Capital Markets Law. Gürlek said the investigation is being conducted by the prosecutor's money-laundering unit with support from the Financial Crimes Investigation Board (MASAK) and İstanbul police financial-crimes investigators.
Orders were sent to relevant institutions to block transfers, sales, donations, mortgages, pledges, account closures, large cash withdrawals and electronic transfers involving assets under investigation. Capital-market instruments covered by the orders are also to be frozen, and suspicious transactions reported to judicial authorities.
Gürlek said the measures were intended to prevent assets under investigation from being transferred to other people or companies while authorities follow the money.
Prosecutors Examine Withdrawals Before the Freeze
Prosecutors have also requested detailed transaction records from the months before the intervention.
The İstanbul Chief Public Prosecutor's Office asked the Central Securities Depository of Türkiye (MKK) for records tied to funds associated with Pusula Finans, Tera Yatırım, Hedef Portföy, Bulls Yatırım, A1 Capital, Atlas Menkul Kıymetler Yatırım Ortaklığı and Pardus Menkul Kıymetler.
The request covers investor transactions from January 1, 2023 through the dates on which the funds were ordered into liquidation. Prosecutors sought purchase and sale values in Turkish lira, participation-unit holdings, ownership ratios and related account records.
They also requested a separate breakdown of investors who exited the funds in July, August and September, including the number of investors, amounts withdrawn and remaining balances. The information was requested urgently.
Gürlek said on September 25 that 76 suspects had faced judicial action. Of those, 45 had been remanded in custody, five placed under judicial control, apprehension proceedings had been initiated for 12, and 14 remained in police custody at the time of his statement. He also said assets belonging to fund owners and suspects in management positions had been seized, while assets belonging to first-degree relatives had been frozen.
The latest 37 travel bans apply to suspects who, according to Gürlek, had not previously faced a judicial measure.
Faster Payments Discussed for Smaller Investors
The Capital Markets Board of Türkiye (SPK) has separately ordered the liquidation of 131 investment funds involving 455,758 unique investors. The decision covers funds managed by seven portfolio management companies.
President Recep Tayyip Erdoğan said on September 24 that the problem was confined to a limited part of the capital market and did not pose a risk to Türkiye's financial system or wider economy. He said those found responsible would face legal action and that further legal and administrative measures would be introduced if needed.
A separate repayment proposal is also under discussion, according to Karar, citing Sabah columnist Dilek Güngör.
Karar reported that Erdoğan chaired a meeting with economic officials at Dolmabahçe in İstanbul where faster payments to investors with less than TL1 million in affected funds were discussed. Investors in money-market funds could receive priority, while Takasbank collateral and assets held in Turkish government debt securities are among the possible funding sources under consideration.
The same report said Bulls, Pardus and A1 Capital had told authorities that some of their funds could meet investor claims, raising the possibility that those funds could be removed from the liquidation list.
No final decision has been announced on the TL1 million proposal or any change to the liquidation list. Karar said another meeting was expected Tuesday.
Sources: Türkiye's Ministry of Justice, İstanbul Chief Public Prosecutor's Office reporting, Central Securities Depository of Türkiye (MKK), Capital Markets Board of Türkiye (SPK), TRT Haber, CNBC-e, Karar, Bosphorus News review and reporting.