Turkey Seeks Asset Freeze on Ex Minister Fatma Betül Sayan Kaya Amid Expanding Investment Fund Probe.
ISTANBUL, Turkey Turkish prosecutors have moved to freeze the assets of former Family and Social Affairs Minister Fatma Betül Sayan Kaya and her husband, İlyas Kaya, as an investigation into alleged irregularities in the country’s investment fund market widens.
The Istanbul Chief Public Prosecutor’s Office said on September 29 that it had sent a request to relevant institutions concerning the freezing of all assets belonging to the couple. The request forms part of a broader investigation into capital market transactions being conducted by the prosecutor’s office.
The development follows allegations surrounding the couple’s trading in shares of Turkish shipbuilder Özata Denizcilik. Turkish opposition figures have alleged that Fatma Betül Sayan Kaya and her husband made substantial gains from the shares shortly before a major market downturn in September. Reuters reported that the couple had invested about 163 million Turkish lira in the company in April and later sold the holdings for roughly 2.17 billion lira, according to allegations cited by opposition politician Zeynel Emre.
The figures have been reported differently by Turkish media, with Euronews citing allegations that Kaya invested about 63.4 million lira and her husband about 99.7 million lira, with combined proceeds running into billions of lira. These figures remain allegations under investigation and should not be treated as established criminal findings.
Kaya resigned from her positions as a deputy chair of President Recep Tayyip Erdoğan’s ruling Justice and Development Party, known as the AK Party, as well as from its executive bodies on September 26. She said the move was intended to allow the allegations concerning her to be investigated without her political position becoming an obstacle to the process. Reuters and the Associated Press reported that she stepped down amid the allegations but did not acknowledge wrongdoing.
The asset freeze request comes against the backdrop of a much wider financial investigation. Turkish authorities have been examining suspected market manipulation and irregularities involving investment funds after a liquidity crisis affected hundreds of thousands of investors. Reuters reported that more than 100 funds valued at about $18 billion were placed into liquidation, affecting nearly 500,000 investors.
Authorities had previously imposed restrictions on dozens of companies, funds and individuals as part of the investigation. Reuters reported that restrictions on 46 companies were later lifted following assessments by Turkey’s Capital Markets Board, while measures involving individuals remained part of the investigation.
The broader scandal has also been described in some international reporting as involving allegations of a Ponzi type structure within parts of the investment-fund market. However, available reporting does not establish that Kaya herself operated or profited from a $26 million Ponzi scheme. The approximately $26 27 million figure appearing in some reports relates to the alleged value of shares sold by Kaya shortly before the market downturn, rather than a proven Ponzi scheme connected directly to her.
The investigation remains ongoing, and the asset freeze request is a legal measure connected to that investigation rather than a finding of guilt. Turkish authorities are continuing to examine transactions, suspected market manipulation and the conduct of individuals and financial entities linked to the fund crisis.