Turkish authorities have arrested six men who have been linked to a $29 million scandal. The six were former executives of GKFX Financial Services Limited.
Turkey has been faced with numerous issues related to scam by financial firms. In a recent case, six executives who worked for GKFX Limited based in Maslak have been arrested. The six were allegedly involved in a $29 million fraud case in which they stole company funds.
The six suspects stole the money by manipulating the accounting books. The names of the three perpetrators have been listed as B.K., C.O., MKY, RE, S.E., and VS. Due to the seniority levels of the executives, the company was unable to detect the manipulation of accounting books.
No Customers were affected
GKFX has clarified that customer funds were not affected in the fraud case. The perpetrators had stolen company funds, after which the company filed a criminal lawsuit prosecuting the six. It also noted that the fraud had not affected the brokerage operations of the firm. The main clients that this business deals with are professional and retail.
The six suspects stopped working for GKFX in the first quarter of last year, after which they formed the brokerage company, NYFX. They used the embezzled funds to create the new company. They also invested in other companies in the financial service sector, including a crypto firm.
The owner of the company, Kasim Garipoglu, also commented on the development, stating the impact of the incident was amended. The legal action taken by the firm against the employees would also help mend the firm’s reputation. The financials for the first quarters of 2021 and 2021 stated that the firm’s operations were at an all-time high, and the business operations were growing faster.
Rising Financial Fraud Cases in Turkey
The Turkish authorities have been having a hard time controlling the financial market in the country. Before this case, one of the largest crypto exchanges in Turkey, Thodex, also closed operations after the company’s CEO fled the country with $2 billion worth of cryptocurrencies from users. The matter is still being investigated by the relevant authorities.
The rise in fraud cases has called for stringent regulatory measures in this environment. Regulators and authorities are looking for ways to control this fast-growing market and protect retail and institutional investors. This will help to curb the possibility of fraud and ensure that jurisdictions stay ahead.