A Turkish court has ordered the detention of former Family and Social Services Minister Fatma Betül Sayan Kaya over an investigation into alleged stock market manipulation involving investment funds.
Kaya was arrested on Friday following questioning by prosecutors in Istanbul over allegations of violating the country’s Capital Markets Law and membership in a criminal organisation.
Prosecutors allege that Kaya possessed non-public information that could influence share prices and used it in transactions involving shares of shipbuilding company Özata Denizcilik.
According to the investigation, Kaya and her husband, İlyas Kaya, invested approximately 163 million Turkish liras and reportedly received about 2.17 billion liras from subsequent investment sales.
Investigators also questioned the timing of the transactions, particularly the sale of shares on September 16, a day before regulators ordered the liquidation of 131 investment funds.
Her husband was released under judicial supervision, with restrictions including a travel ban.
Kaya and her husband have denied wrongdoing and maintained that their investment transactions complied with regulations. The couple reportedly transferred substantial investment gains to an account designated by financial regulators
The scandal emerged in September after several investment funds experienced liquidity problems and failed to meet investors’ withdrawal requests, prompting the Capital Markets Board to order the liquidation of 131 funds.
The investigation has since expanded to include financial executives, former regulators and other individuals suspected of market manipulation, insider trading and corruption.
Turkey’s Justice Minister, Akin Gurlek, said earlier this week that 433 suspects were under investigation, with 112 in pretrial detention
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