Turkey's Justice Minister Akin Gürlek has described the sprawling investigation into a multi-billion-dollar investment fund scandal as uncovering a "comprehensive criminal network" that reached into the highest levels of the country's financial markets. Speaking to the private broadcaster NTV on Tuesday, Gürlek said the affair was far more than a simple stock market scam, involving a coordinated effort to manipulate shares and siphon liquidity from the market.
The probe, which began in mid-September, has already led to the detention of the head of the Istanbul stock exchange, Borsa Istanbul, and has raised uncomfortable questions about political connections. The scandal has dominated Turkish headlines for weeks, putting pressure on President Recep Tayyip Erdoğan's ruling AK Party (AKP), particularly after a senior party figure resigned over allegations related to her investment activities.
Network reaches into financial bureaucracy
Gürlek asserted that the investigation, initially focused on market actors, has now exposed a criminal organisation extending into the upper levels of the financial bureaucracy. "Those within the mechanism that controls the money rendered the oversight mechanisms ineffective by establishing a system of bribery," he said. By forming a "cartel," the network sought "to siphon off liquidity from the market by manipulating certain shares and to take control of the market."
Investigators are looking into 433 suspects, with 112 already jailed pending trial, 186 released under judicial control, and 38 still at large. Gürlek mentioned that among the suspects are "political figures linked to criminal organisations within our fund market," though he declined to provide further details.
The case has already claimed high-profile scalps. On Saturday, Korkmaz Enes Ergun, the head of Borsa Istanbul, was detained on suspicion of "membership in an organisation established to commit crimes" and accepting bribes, according to the state-run Anadolu news agency. Two weeks earlier, the head of Turkey's SPK capital markets regulator was dismissed by presidential decree, just days after prosecutors began investigating his predecessor. The deputy finance minister also resigned after his son-in-law was jailed pending trial in connection with the affair.
Government seeks return of funds
The government has called for the voluntary return of all monies obtained through market manipulation. Gürlek told NTV that approximately 30 billion lira (€536 million) in cash, real estate, and shares had been collected so far, while vowing to pursue any funds transferred abroad. Erdoğan's office said on Tuesday that by 30 October, payments totalling 97.3 billion lira had been made to nearly 250,000 investors, according to a post on X.
The justice minister also alleged "extensive collusion between those carrying out the stock market manipulation and the media," though he did not elaborate. Police have detained five journalists, charging them with spreading misinformation about the scandal, several of whom have been jailed pending trial.
The affair has cast a shadow over Turkey's financial markets and raised concerns among international investors. The country's regulatory framework is under scrutiny, and the government's response will be closely watched in Brussels and other European capitals, given Turkey's role as a key partner and its ongoing EU accession talks. The scandal also echoes broader concerns about governance and the rule of law in the region, as highlighted by recent judicial controversies in Poland.
As the investigation continues, the focus remains on recovering investor funds and ensuring accountability. The case has become a test of Turkey's commitment to financial transparency and the independence of its regulatory institutions.
