Renowned tycoon set to stand trial over fuel smuggling
An Istanbul court accepted prosecutors' indictment for Aydın Doğan, a prominent tycoon and honorary president of Doğan Holding, who is accused of fuel smuggling. Doğan and 46 other suspects, including a top banker, are scheduled to attend the first hearing of the case, which will be held in Istanbul on Jul. 13.
Doğan and Ersin Özince, chairman of the board of Turkey's İşbank, as well as Doğan's daughter Hanzade Doğan Boyner, are accused of large-scale fuel smuggling with prosecutors asking up to 25 years in prison for suspects.
The accusations stem from a smuggling scheme involving Petrol Ofisi, the state-run fuel distributor that was privatized and then purchased by Doğan Holding in 2000, before the conglomerate sold the shares to an Austrian petroleum company in 2010.
Former senior Doğan Holding executives will also stand trial for the alleged smuggling between 2001 and 2008. The suspects are accused of violating anti-smuggling laws, forging official documents and running a criminal organization.
The charges against Özince, who stepped down as general manager of İşbank, one of the biggest lenders in the country, before he was appointed chairman of the board in 2011, stem from İşbank's partnership with Doğan as a stakeholder in Petrol Ofisi.
The Istanbul Prosecutor's Office asked for a minimum prison term of eight-and-a-half years for the defendants and prison terms of up to 25 years on separate charges.
The Sabah daily claimed that the smuggling charges were related to a tax evasion case and that Doğan Holding set up two front companies in the United Kingdom for the transfer of Russian crude oil in order to evade higher taxes.
The investiga
tion started after a tip-off to police over Petrol Ofisi's oil imports.
Quoting the indictment, Anadolu Agency (AA) said Petrol Ofisi, after acquisition by Doğan, purchased a Bahamas-based company for oil imports and the name of this company was changed to Point. The company was used to disguise imports as coming from European Union countries where such imports are subject to tax exemptions. The indictment claims Point deliberately reported low costs to alter import figures resulting in a $6.3 million tax loss.
Doğan and Ersin Özince, chairman of the board of Turkey's İşbank, as well as Doğan's daughter Hanzade Doğan Boyner, are accused of large-scale fuel smuggling with prosecutors asking up to 25 years in prison for suspects.
The accusations stem from a smuggling scheme involving Petrol Ofisi, the state-run fuel distributor that was privatized and then purchased by Doğan Holding in 2000, before the conglomerate sold the shares to an Austrian petroleum company in 2010.
Former senior Doğan Holding executives will also stand trial for the alleged smuggling between 2001 and 2008. The suspects are accused of violating anti-smuggling laws, forging official documents and running a criminal organization.
The charges against Özince, who stepped down as general manager of İşbank, one of the biggest lenders in the country, before he was appointed chairman of the board in 2011, stem from İşbank's partnership with Doğan as a stakeholder in Petrol Ofisi.
The Istanbul Prosecutor's Office asked for a minimum prison term of eight-and-a-half years for the defendants and prison terms of up to 25 years on separate charges.
The Sabah daily claimed that the smuggling charges were related to a tax evasion case and that Doğan Holding set up two front companies in the United Kingdom for the transfer of Russian crude oil in order to evade higher taxes.
The investiga
tion started after a tip-off to police over Petrol Ofisi's oil imports.
Quoting the indictment, Anadolu Agency (AA) said Petrol Ofisi, after acquisition by Doğan, purchased a Bahamas-based company for oil imports and the name of this company was changed to Point. The company was used to disguise imports as coming from European Union countries where such imports are subject to tax exemptions. The indictment claims Point deliberately reported low costs to alter import figures resulting in a $6.3 million tax loss.
Last Update: March 24, 2016 01:40