The Istanbul 3rd penal (sulh ceza) court has appointed Turkey’s state deposit insurance fund TMSF as trustee at Investco Holding (INVES) and Hat Holding, the Istanbul chief prosecutor’s office (@istanbulCBS) said on November 5.

The office’s statement noted that more than 20 suspects, including Nihat Ozcelik (a Borsa Istanbul investor), were arrested in September in two detention waves.

The suspects are accused of violating the capital markets law, starting a criminal organisation and money laundering.

Market manipulation

The two holding companies are financially responsible for the activities of the criminal group, which manipulated financial statements and controlled market movements with false filings on the public disclosure platform (KAP), the office also said.

Prosecutors also accused the organisation of carrying out transactions via collaborations to increase or decrease prices as well as committing some other similar unlawful activities.

Listed units Verusa and Pamel

Another listed company, Verusa Holding (VERUS), is a unit of Investco. Pamel Elektrik (PAMEL), also listed, is, in turn, a unit of Verusa. Both companies are now also under the management of TMSF.

Q Investment Bank boss arrested for loan sharking

Separately, local media reports suggested on November 10 that a local court has ordered the formal arrest of Ali Ercan, board chairman of Q Investment Bank, as part of a loan sharking prosecution.

On November 7, the Istanbul chief prosecutor’s office (@istanbulCBS) announced the detention of Ercan and two other individuals.

Ercan is also board chairman of Borsa Istanbul-listed companies Bien Yapi (BIENY), Qua Granite (QUAGR), Gezinomi (GZNMI) and Petrokent Turizm (PKENT) in addition to portfolio management company Allbatross Portfoy and Q Finans Faktoring.

On November 10, the listed companies said in separate stock exchange filings that the arrest of their board chairman had not affected their operations.

Fintech licences revoked

Separately, a notice in the Official Gazette showed on November 8 that the central bank has revoked licences of payment services companies Payfix, Aypara (iPara) and Ininal.

The companies were seized in March under a prosecution that targeted owner Erkan Kork.

Last month, the licence of another fintech company, Papara, which was seized in May, was revoked.

Eyupspor president detained

In another case involving detentions, Murat Ozkaya, president of football club Eyupspor, and Fatih Sarac, a former president of another football club, Kasimpasaspor, were on November 7 detained along with 17 football referees under an ongoing illegal betting and match-fixing prosecution.

Sarac was already previously detained under the Ciner Holding operation. Kasimpasaspor is owned by Ciner Holding boss Turgay Ciner. Sarac is close to Turkey’s president, Recep Tayyip Erdogan.

Sarac was released while prosecutors on November 10 demanded the formal arrest of Ozkaya.

What lies behind the rash of investigations?

Since February, Turkey’s government has been conducting many simultaneous judicial operations. Every day, people are arrested and companies are seized.

Separately, political operations targeting the main opposition Republican People’s Party (CHP) continue.

It is widely believed that the main goal of the operation against the CHP is to sideline Istanbul mayor Ekrem Imamoglu, who would stand an excellent chance of dethroning Erdogan should he be allowed to go ahead with a run for the presidency in the next elections.

Simultaneous operations targeting alleged economic crimes serve to muddy the focus on the jailing of Imamoglu, while also providing opportunities for wealth transfer and attracting public support.

Lately, some unnamed sources have been telling journalists that operations targeting financial crimes are being conducted to keep Turkey off the grey list of The Financial Action Task Force (FATF), the Paris-based watchdog that assesses the extent of money laundering and terrorism-financing in member countries.