Turkish police have detained several financial executives in a probe into fund
failures regulators have likened to a Ponzi-style scheme. Media reported Tera
Holding chairman Emre Tezmen and board members Emre Alkin and Kerem Alkin were
detained, and a detention order was issued for Pusula Holding chairman Serdar
Turhan. Turkey’s market regulator has ordered liquidation of seven asset
management firms and 131 funds totaling about $20bn, including vehicles managed
by Tera and Pusula. Large redemptions left some funds unable to meet
withdrawals; Tera and Pusula previously announced defaults on certain funds,
triggering market panic and sharp equity declines. Justice officials described
the episode as Ponzi-like, and Finance Minister Mehmet Simsek said anyone found
to have violated rules will be held accountable.
