Why has Koza İpek Holding been appointed trustees?

At the request of the Ankara Public Prosecutor's Office, the Ankara 5th Criminal Court of Peace decided on Monday to assign trustees to administer the Koza İpek Holding, which is alleged to have links with the Gülenist Terror Organization (FETÖ), and has been found to have a seemingly legal structure that launders money through an international method known as "Smurfs." The appointment of trustees has been described as "unlawful" by the Gülenist media, but the following points explain the reason of such an action in all parts.

Gülenist media is trying to manipulate the public regarding the decision of the Ankara Public Prosecutor's Office to appoint trustees to the Koza İpek Holding, but in their reports, they refrain from stating that the holding and its affiliate companies have been found by the Financial Crimes Investigation Board (MASAK) to have been laundering money to finance the Gülen structure's illegal activities.

In the investigation, the teams from the MASAK have reportedly found that the origin of some of the money transferred to the holding's bank accounts could not be determined. It was alleged that the non-documented balance is the money compiled for the Gülen Terror Organization. Many such transaction of this sort on behalf of the holding violated the EFT regulations of the Central Bank, the prosecutors said.

The Koza İpek Group has been found to inflate its production and efficiency, particularly in gold mining. The conglomerate then moves this illicit money into a system under the guise of donations and charities through foundations established by the same partners.



The Koza İpek Holding also inflated production and productivity amounts, especially in its gold operations. It had changed stock values, which resulted in the accumulation of extreme amounts that appear to have been gained through legal operations. Furthermore, such amounts were directed to foundations and other nongovernmental organizations established by the same partners that were allegedly for "donations and aid," which made such payments appear as legal monetary transactions.

The Gülenist media claims that the experts have not conducted an on-site examination, and without it, such alleged "illegal activities" cannot be determined, but such claims are baseless. The database and balance of sheets of companies conducting operations in the same business are enough to interfere with the actions of the company in question.

The experts have found that the Koza İpek Group has inflated its stock values at the Istanbul stock exchange via its misrepresented balance sheets contrary, as a result of which the investors were misled about the real value of the company.

The holding is suspected of providing financial support and distributing FETÖ propaganda of, which is led by the U.S.-based Turkish fugitive imam Fethullah Gülen who lives in self-imposed exile in rural Pennsylvania.

The experts' report, which said such transfers are another type of money laundering scheme, also stressed that the funds were collected at nongovernmental organizations to which easier and less strict auditing rules apply. Moreover, since how and what such funds were spend on could not be determined, a grey economic area appeared due to such donations' inability to be controlled or audited.

Experts provided details about this type of money laundering scheme, stressing: "As everything in Smurf Village is small and every person has their own title and duties, in this type of money laundering, duties have been distributed among institutions and individuals; therefore, everyone believed they were performing legal duties. Yet this type of organization is set up solely for money laundering, and while it can be detected as these units are linked internally, they appear separate on the outside."

The Gülen Terror Organization is accused of conspiring against the state, wiretapping thousands of people including government officials and encrypting phones. The organization has been labeled a threat against the country's national security. According to Turkish law no: 6415, as part of the United Nations Security Council's regulation regarding the prevention of financing terrorism, providing financial support to a terrorist organization is a crime; thus, operations can accordingly take place and assets frozen