Turkey Gripped by Fund Fraud Scandal: 455,000 Investors Affected, AKP Official Resigns

Turkey's benchmark BIST 100 stock index fell 6% in a single day and lost approximately 12% within a few trading days after a sweeping investment fund fraud scandal erupted in mid-September 2026. About 455,000 investors were affected.

The scandal centers on fund managers who artificially inflated the value of their investment funds by filling them with near-worthless "junk stocks." Turkey's financial markets regulator SPK intervened and shut down funds from seven asset managers including Tera, Pusula, and Atlas. According to state news agency Anadolu, 131 funds in total are being liquidated. Two Tera funds alone held approximately €6.5 billion in assets.

Arrests and Political Fallout

The Istanbul prosecutor's office launched investigations for fraud, capital market violations, and formation of a criminal organization. Over 45 people have been arrested, and assets of 42 individuals and 46 legal entities frozen. The liquidation period was extended from 3 to 6 months to reduce forced selling pressure.

AKP deputy chairwoman and former Family Minister Fatma Betül Sayan Kaya resigned, accused of improper stock transactions during the crisis. She asked President Erdoğan to relieve her of all duties, citing that political responsibility goes beyond legal accountability. The opposition announced plans to request a parliamentary investigation when parliament reconvenes.