Turkish fund scandal exposes regulatory failures as 455,758 investors lose 830 billion lira

September 27, 2026 at 07:30 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Turkish prosecutors liquidated 131 funds of seven portfolio companies since September 17, affecting 455,758 investors and 830 billion lira. The Istanbul Chief Public Prosecutor's Office had warned the Capital Markets Board (SPK) about suspicious trading as early as February 25, 2025, naming Pusula Portfolio Chairman Muhammed Yarız. Despite warnings to SPK and MASAK, no preventive action was taken before the collapse.

Key Facts

Since September 17, 131 funds of seven portfolio companies have been liquidated, affecting 455,758 investors and 830 billion lira.
45 people, including the bosses of Tera, Pusula and Destek, have been arrested, and 37 people face overseas travel bans.
The Istanbul Chief Public Prosecutor's Office first warned SPK on February 25, 2025, about extraordinary activity on Borsa Istanbul and named Pusula Portfolio Chairman Muhammed Yarız.
On August 17, the prosecutor's office wrote to MASAK about suspicious money movements, but the letter was leaked to Pusula executives.
Pusula Finance Holding Chairman Serdar Turhan transferred 1 billion 198 million lira to an Edmond de Rothschild Bank account in Switzerland on August 24.

Regulatory Warnings Ignored

The Istanbul Chief Public Prosecutor's Office sent its first warning to SPK on February 25, 2025, flagging extraordinary activity on Borsa Istanbul and requesting information. The letter listed suspects, including Pusula Portfolio Chairman Muhammed Yarız, who was accused of manipulation in Can2 Termik, Vakıf Finans, Katılımevim, Birleşim Grup Enerji, and Mopaş shares. Nine months later, on November 4, 2025, Treasury and Finance Minister Mehmet Şimşek acknowledged manipulation in some funds, and then-SPK Chairman Ömer Gönül promised license revocations if necessary. No licenses were revoked and no measures were implemented before the collapse.

Suspicious Share List

On August 19, the prosecutor's office sent a confidential letter to SPK identifying shares with price increases up to 100 times their value, creating abnormal price movements. The list included Özata Denizcilik shares traded by Tera, Gündoğdu Gıda Süt Ürünleri shares traded by Pusula, and Destek Faktoring shares. SPK again did not intervene.

MASAK Warning and Asset Flight

Two days before the SPK letter, on August 17, the prosecutor's office wrote to MASAK about suspicious money movements. Had MASAK monitored the flows and placed restrictions on bank accounts, Turhan and Yarız would not have been able to move assets abroad. The letter was leaked to Pusula executives, and on August 24, Pusula Finance Holding Chairman Serdar Turhan transferred 1 billion 198 million lira to an Edmond de Rothschild Bank account in Switzerland.