Turkey: Stock Market Manipulation Probes Reach Former Capital Markets Board Chairman

A recent letter issued by the Money Laundering Crimes Investigation Office under the Istanbul Chief Public Prosecutor's Office stated that measures were taken based on reports and findings indicating that manipulation operations in some stocks traded on the stock exchange were carried out using investment portfolio management companies and investment funds.

According to "Independent Turkey," the letter included an assessment of the responsibility of former Turkish Capital Markets Board chairman Ibrahim Omer Gunol, at a time when the prosecutor's office requested the Ministry of Treasury and Finance to allow opening an investigation against him on charges of "abuse of power."

Reports indicate that the investigations included examining publicly traded stocks on the Istanbul Stock Exchange, as well as public and private funds listed on the Turkish Financial Stability Authority (TEFAS), to verify the correlation and synchronization in the movements of these funds and stocks.

The acts mentioned in the files were classified under categories of aggravated fraud, forming an organization to commit crimes, money laundering, and market manipulation.

The prosecutor's office stated in a written statement that the Capital Markets Board is obligated to conduct multi-level audits of investment funds using financial and digital control mechanisms.

The statement noted that protecting investor rights, monitoring fund compliance with regulations, and overseeing market and price movements are among the board's main responsibilities. The board is also required to monitor whether these funds cause artificial price movements in Istanbul Stock Exchange shares that do not align with economic and financial realities.

The prosecutor's office mentioned that some reports prepared by the Capital Markets Board (SPK) from 2024 to September 2026 included findings indicating that manipulative transactions in some stocks in the Istanbul Stock Exchange equity market were executed through funds, and criminal complaints were filed with the prosecutor's office accordingly. The statement noted that numerous funds were examined as part of the investigation.

The public prosecution announced that some investment funds achieved unusually high returns compared to similar funds in terms of their operational and investment strategies, and that investors invested based on the assurance that these funds were subject to Capital Markets Board supervision.

However, it was observed that some investors received no return on their investments, and some even lost their entire capital.

Investigation files indicate that investment portfolio management companies, their shareholders and controlling managers, along with certain individuals and legal entities, were used to identify individuals and companies that achieved "impossible profits" due to their manipulation.

Responsibility of the Former Regulatory Body Chairman
The prosecutor's office also assessed the responsibilities of Ibrahim Omer Gunol during his tenure as chairman of the Capital Markets Board.

The prosecutor's assessment stated that there are "clear and sufficient indications" that Gunol failed to fulfill his duties and powers in conducting investigations, audits, and evaluations as stipulated by law.

According to Article 133 of Turkey's Capital Markets Law No. 6362, permission from the relevant minister is required to investigate alleged crimes committed by the chairman and members of the Capital Markets Board in relation to their duties.

Therefore, according to "Independent Turkey," the prosecutor's office submitted a request to the Ministry of Treasury and Finance for permission to investigate Ibrahim Omer Gunol on charges of "abuse of power." The statement noted that the request was submitted to the ministry on September 2026.