Investigators probing a major investment fund scandal impacting Turkish financial markets have uncovered a "comprehensive criminal network" as the structure is not limited to "scam or market manipulation," Justice Minister Akın Gürlek said Tuesday.
His remarks came days after police detained the Istanbul stock exchange boss as part of a comprehensive probe that began in mid-September into allegations of market manipulation affecting nearly half a million investors.
"The structure is not limited to a simple stock market scam; there is a comprehensive criminal organization involved," Gürlek said.
"Although the investigation initially began with market actors, it has now revealed a criminal organization that extends into the upper levels of the financial bureaucracy," he said.
Investigators were looking into 433 suspects and probing "all links within the structure, which extends to the very foundations of the financial system and the upper echelons of the capital markets."
So far, 112 suspects had been jailed pending trial, while another 186 had been granted conditional release, and 38 others were still being sought, Gürlek said.
On Saturday, Korkmaz Enes Ergun, head of the Borsa Istanbul stock exchange, was detained on suspicion of "membership in an organization established to commit crimes" and accepting bribes, Anadolu Agency (AA) reported.
Two weeks ago, the head of the Capital Markets Board (SPK) was also removed from the post by presidential decree just days after prosecutors began investigating his predecessor in connection with the affair. At the same time, the deputy finance minister also resigned.
New leadership to the market regulator was appointed over the weekend.
Following the crisis, the government has called for the voluntary return of assets obtained through market manipulation, with Gürlek telling NTV broadcaster that "approximately TL 30 billion ($600 million) in cash, real estate and shares" had so far been collected.
Authorities have moved quickly to tackle the issue and a special board was established to follow the process, including the return of the money to investors.
Gürlek also said members of the network engaged in "close and systematic collaboration" and also claimed there was "extensive collusion between those carrying out the stock market manipulation and the media."
"The objective of this network is to manipulate certain stocks in order to absorb market liquidity and gain control of the market. By forming a cartel in this manner, they have caused harm to our economy," the minister stated.
"We will ensure that everyone who bears responsibility is held to account before the judiciary," he pledged.
