Former Turkish minister detained in widening funds probe

Fatma Betul Sayan Kaya, a former minister and deputy chair of President Recep Tayyip Erdogan’s ruling Justice and Development Party, was taken into custody late Thursday. State-run Anadolu Agency reported that she is being held pending a possible trial on charges of membership in a criminal organization and violating Turkey’s Capital Markets Law.

The detention follows allegations that Kaya sold shares worth tens of millions of dollars shortly before regulators decided to liquidate several investment funds. Those regulators had moved to liquidate the funds due to suspected share-price manipulation. Kaya resigned from her party position in September, shortly after the allegations became public.

Kaya served as family and social affairs minister from 2016 to 2018. Her husband was released on the condition that he regularly report to police after the couple underwent a second round of questioning.

Turkey’s main opposition party accused Kaya of receiving 2.17 billion liras, or approximately $43 million, after investing 163 million liras, or about $3 million, in one of the funds. Media reports indicate the couple have denied any wrongdoing but transferred some of the profits to an account designated by banking regulators.

Justice Minister Akin Gurlek stated this week that more than 430 people are under investigation for suspected market manipulation and insider trading. Of those under investigation, 112 have been arrested as part of the ongoing scandal.