A court has ordered the arrest of former Family and Social Policies Minister Fatma Betül Sayan Kaya as part of a sweeping investigation into alleged stock market manipulation involving investment funds.
Kaya, who resigned as the deputy chair of the ruling Justice and Development Party (AKP) after the crisis unfolded, was remanded in custody on charges of membership in a criminal organization and violating the Capital Markets Law.
Her husband, İlyas Kaya, and former Capital Markets Board (SPK) Chair İbrahim Ömer Gönül were released under judicial supervision, including travel bans and regular reporting requirements. All three had been summoned for a second round of questioning by prosecutors.
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Accusations
Prosecutors allege that Kaya used nonpublic information to sell shares in Özata Denizcilik on Sep 16, one day before regulators decided to liquidate the investment funds involved.
Kaya and her husband reportedly invested approximately 163 million liras in the company in April and sold their holdings for around 2.17 billion liras four months later.
According to prosecutors, Kaya transferred her shares directly to Tera Yatırım and received payment the same day, rather than following the usual two-business-day settlement process. Investigators also cited her contacts with Tera executives as evidence that she may have known about the impending liquidation decision.
The couple previously denied wrongdoing and said their transactions complied with regulations. They subsequently transferred approximately 1.86 billion liras in profits to an account designated by the Savings Deposit Insurance Fund (TMSF).
Background
The wider investigation began after allegations that investment funds had coordinated trades to artificially inflate share prices. A liquidity crisis in September prompted regulators to order the liquidation of 131 funds after some struggled to meet investor withdrawal requests.
Investigators are examining suspected market manipulation, insider trading, bribery and organized criminal activity involving fund managers, financial executives and former regulators.
According to figures announced by Justice Minister Akın Gürlek on Nov 3, the investigation covers 433 suspects, including 112 held in pretrial detention and 186 under judicial supervision. Arrest warrants remain outstanding for another 38 suspects.
Authorities have also imposed asset freezes and other restrictions on 359 individuals and 111 legal entities.
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(VK)
