Suspected of Fictitious Transactions on a Massive Scale: CEO of the Turkish Stock Exchange Arrested

The CEO of the Turkish stock exchange, Korkmaz Enes Ergun, was arrested on suspicion of fictitious transactions, bribery, and membership in a criminal organization. The investigation examines artificial inflation of stock prices through investment funds, which led to a crash in September. 99 additional suspects were arrested.

The CEO of the Turkish stock exchange, Korkmaz Enes Ergun, was arrested yesterday (Saturday) on suspicion of massive fictitious transactions, bribery, and membership in a criminal organization. The investigation examines whether stock prices on the Istanbul exchange were artificially inflated through investment funds, leading to a crash last month. On September 17, fund management company Fusula Portföy announced that some of its funds failed to meet redemptions, causing indices to plummet. The BIST 100 index fell by 5.54% to 13,122 points, and the banking index dropped by 6.38%. Approximately 129 billion lira (about $2.7 billion) were withdrawn from Fusula funds since the end of August. The Turkish Capital Markets Board liquidated 131 funds and transferred the case to the Istanbul public prosecutor, who is investigating suspicions of money laundering and manipulation. As of October 23, 99 additional suspects have been arrested in the case. The article notes that Ergun has worked at the exchange for about 29 years and was appointed CEO in March 2021.