Nine Israelis Arrested in Turkey Amid International Investment Scam Probe

Nine Israeli citizens are among over 200 individuals arrested in Turkey as part of a major investigation into an international investment network suspected of operating from dozens of call centers in Istanbul and Mugla. The network allegedly defrauded people worldwide by convincing them to transfer money for investments in forex and cryptocurrency.

Authorities have seized assets worth approximately 1.5 billion Turkish Lira, along with 80 vehicles and 12 real estate properties. Bank accounts and crypto assets have also been frozen. Financial activity analysis revealed transactions totaling around 13 billion Lira, roughly $266 million, over the past two years. The scam method is described as typical for investment fraud, where victims are lured by online advertisements, receive calls from representatives speaking their language, and are shown fabricated profits to encourage larger investments. When victims attempt to withdraw funds, they are met with demands for taxes, commissions, or further payments.

Investigators found that employees at the call centers allegedly used aliases and fabricated professional backgrounds to build trust. Candidates reportedly underwent polygraph tests, and personal phones were prohibited in the office. This operation occurs as Turkish authorities intensify their crackdown on financial fraud and manipulation.

In parallel, a separate investigation is underway in Turkey's domestic fund market. Last weekend, the chairman of Terra Holding, Emre Tazman, and other executives, along with the chairman of Fosula, Serdar Turhan, were arrested. Altunç Kömeçoğlu, chairman of Destek, was previously arrested. These arrests are linked to suspicions of trading manipulation, with Kömeçoğlu reportedly losing nearly $4 billion on paper within three days as his company's stock plummeted.

The Turkish regulator has ordered the liquidation of 131 funds managed by seven investment firms, holding nearly $20 billion in assets. Major banks are overseeing the liquidation and asset sales process. This action followed difficulties faced by Terra and Fosula funds in returning money to investors seeking withdrawals, partly due to the illiquidity of some of their concentrated, low-float stock holdings. One Terra fund, for example, attracted approximately 100,000 investors and $5 billion in assets after reporting extremely high short-term returns, a mechanism that collapsed under large-scale redemption requests.