Turkey Detains 15 in Katilimevim Share Probe, Freezes Assets of Nine Firms

Turkish authorities detained 15 people on Monday as part of an investigation into transactions involving shares of Katilimevim, a listed savings financing company, Justice Minister Akin Gurlek said. Assets linked to executives at several other investment firms were also frozen.

Prosecutors have opened legal proceedings against 25 suspects in the case, Gurlek said in a statement. Ten of those suspects remain at large.

The detentions follow criminal complaints filed last week by the Capital Markets Board against 38 people over the alleged manipulation of shares in Katilimevim and two other listed companies. The board also imposed two-year trading bans on those individuals.

The action is part of a broadening crackdown on suspected share-price manipulation at the centre of a liquidity crisis that has rattled Turkey's investment fund industry, prompting regulators to freeze scores of funds and order their liquidation.

According to Gurlek, financial and asset transactions involving executives and officials linked to nine firms have been frozen: Pusula Finans Holding, Pusula Yatirim Menkul Degerler, Tera Yatirim Menkul Degerler, Tera Portfoy Yonetimi, Hedef Holding, Hedef Portfoy Yonetimi, Bulls Yatirim Menkul Degerler, Bulls Portfoy Yonetimi and Ufuk Yatirim Yonetim ve Gayrimenkul. None of the nine companies immediately responded to requests for comment.

The government has directed banks, notaries, land registry authorities and the financial crimes watchdog MASAK to prevent assets under investigation from being transferred or reduced. Authorities have also ordered strict monitoring of transactions by board members, authorised signatories, their spouses and close relatives that could diminish their assets, with such transactions requiring clearance from prosecutors.

Gurlek said the investigation was continuing.