Turkey arrests Tera chairman as ‘Ponzi-like’ fund probe affects 450,000 investors
Turkish authorities arrested the chairman of Tera Yatirim Menkul Degerler AS on Wednesday morning, the brokerage at the centre of the country's current investment fund scandal, with funds worth more than $18 billion (€15.7bn) and held by over 450,000 people now being liquidated.
Turkish authorities have arrested the chairman of Tera Yatırım, Emre Tezmen, along with four others, as part of a probe into "Ponzi-like" fund activities affecting 450,000 investors. The arrest comes after investors in 131 Turkish funds faced delays in receiving their funds, with some investments taking up to six months to liquidate.
Tera Yatırım's fund management unit had reported missed payments due to a high number of investor withdrawals from two of its funds. Authorities also froze assets linked to executives at several financial firms and restricted transactions by their families. Turkish Justice Minister Akın Gürlek vowed to hold those exploiting citizens' savings accountable, as the funds' value was estimated to be $18.3 billion, but recovery for investors remains uncertain.
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