Turkey detains Tera, Destek executives amid $7.5B fund investigation

Turkish authorities descended on Istanbul’s financial district this week, detaining top executives from Tera Holding and the Destek investment group as part of a sprawling investigation into mass fund outflows, redemption defaults, and alleged share-price manipulation. Tera Portföy disclosed defaults on redemption payments totaling approximately 366 billion Turkish lira, roughly $7.5B, across two major funds on September 16. That disclosure set off a chain reaction that saw Turkey’s Capital Markets Board, known as the SPK, suspend trading in all TEFAS-traded funds linked to Tera Portföy and mandate the liquidation of around 130 specific investment funds the following day. The detentions and travel bans Among those detained in the raids were İbrahim Bekçi of Tera Holding and Altunç Kumova from Destek Yatırım. Travel bans were imposed on 48 individuals, including Tera’s chairman Emre Tezmen. Tezmen had characterized the unfolding crisis as a coordinated attack by “malevolent forces” just days before landing on the travel restriction list. The SPK also filed criminal complaints against dozens of individuals over allegations of share-price manipulation in stocks including Destek Finans...