Turkey: Ex-minister arrested in a major fund manipulation scandal
Former Turkish minister Fatma Betul Sayan Kaya was placed in detention pending trial on Friday as part of a multi-billion-dollar investment fund investigation.
An Istanbul court remanded Kaya in custody on charges of "violating the capital markets law and membership of an organization established for the purpose of committing crimes," state-run news agency Anadolu reported. Her husband was released on condition that he regularly report to police.
Political Fallout
Kaya served as family minister from 2016 to 2018 and until recently was a deputy chair of Erdogan's ruling AKP. She resigned on September 26 following allegations by the main opposition Yeni Party that she had made huge profits from the investment scandal.
Sayan Kaya rejected the allegations against her but returned some of the money she is accused of having fraudulently obtained.
Scandal Details
Yeni Party Chairman Zeynel Emre has accused Kaya and her husband of receiving 2.17 billion lira ($43 million, €38.4 million) after reportedly investing 163 million lira in one of the funds. They allegedly sold shares before suspected price manipulation triggered a stock market crisis.
The couple denied any wrongdoing but transferred some of the money to an account designated by banking regulators. The financial regulator dissolved 131 funds as part of the crisis.
Justice Minister Akin Gurlek reported that more than 430 people are under investigation, including 112 who have been arrested. Opposition leader Ozgür Ozel claimed Erdogan was ultimately responsible and called for his resignation or early elections.
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