Turkey Arrests Former Minister in Widening Fund Manipulation Probe

ANKARA — Turkish authorities have detained a former cabinet minister and deputy chair of President Recep Tayyip Erdogan’s ruling Justice and Development Party (AKP) over her alleged role in a share-price manipulation scandal that has engulfed several investment funds.

Fatma Betul Sayan Kaya, who served as minister of family and social affairs from 2016 to 2018, was taken into custody late Thursday pending possible trial on charges of membership in a criminal organization and violations of Turkey’s Capital Markets Law, the state-run Anadolu Agency reported. Her husband was released after a second round of questioning on condition that he report regularly to police.

Kaya resigned from her party post in September, shortly after allegations surfaced that she had sold shares worth tens of millions of dollars just before regulators ordered the liquidation of the funds in question over suspected manipulation. The main opposition party has accused her of turning a 163 million lira (approximately $3 million) investment into 2.17 billion lira (about $43 million) in one of the funds. The couple deny any wrongdoing but have transferred a portion of the profits to an account designated by banking regulators, according to media reports.

The investigation has widened significantly. Justice Minister Akin Gurlek said this week that more than 430 people are under scrutiny for suspected market manipulation and insider trading, with 112 already arrested as part of the probe.

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