Turkish authorities arrested 13 people and released six including a prominent economist in an investigation into alleged stock manipulation, the state-run Anadolu news agency reported Friday evening.
Işık Ökte, a well-known market commentator who had been detained earlier this week, was released under judicial supervision.
The İstanbul Chief Public Prosecutor’s Office said in a statement on Tuesday that the investigation was launched over claims that securities traded on Borsa Istanbul, the country’s main stock exchange, had been manipulated. In a statement prosecutors said executives at Investco Holding allegedly laundered illicit profits through the stock market and other investment tools, in violation of Turkey’s capital markets law.
The prosecutor’s office said reports by Turkey’s Financial Crimes Investigation Board and the Capital Markets Board had identified the individuals and companies allegedly involved.
Police from İstanbul’s Financial Crimes Department took Ökte into custody as part of the investigation.
Ökte was seen telling reporters outside İstanbul police headquarters that he did not know what was happening.
Ökte, who studied economics and mathematics at Hamilton College in the United States after graduating from Istanbul’s Robert College, began his career in 1994 in Goldman Sachs’ investment banking division. He later worked at Broadway Trading in New York and JP Capital and held senior roles at Finans Invest, Halk Invest and TEB Invest. He now works as a financial consultant and fund manager.
The detentions attracted extensive coverage in the Turkish media as Ökte is well known in financial circles and frequently quoted as a market analyst.
Shares of Investco Holding, Verusa Holding AS and Verusaturk GSYO have all plunged more than 20 percent over the past four trading days in İstanbul, Bloomberg reported. Investco owns a majority stake in Verusa Holding, which in turn controls a majority of venture capital firm Verusaturk GSYO.
All three companies postponed their annual general meetings after failing to gather a quorum of board members, they said in exchange filings.