Turkey prosecutors indict bank CEO in $44 million Ponzi scheme
The latest indictment seeks lengthy prison sentences for the bank executives over a scheme targeting soccer stars.
ANKARA — Istanbul prosecutors have indicted the CEO of Denizbank and another former executive over an estimated $44 million Ponzi scheme that drew money from dozens of people including soccer stars, according to Turkey’s state-run Anadolu Agency.
Anadolu reported on Tuesday that the indictment is seeking sentences of 72 to 240 years for Hakan Ates, the CEO of Denizbank, which is owned by Dubai’s Emirates NBD, and Mehmet Aydogdu, a former bank executive.
The accusations come as part of an ongoing case opened last year against former Denizbank branch manager Secil Erzan.
Erzan, who has been behind bars since April 2023, was accused of collecting millions of dollars from people, promising up to 250% interest for what she described as a secretive fund owned by the bank, which turned out to be a Ponzi scheme, according to an indictment prepared last year.
Twenty-four people including Turkish soccer stars said they were lured into handing over millions of dollars to Erzan, according to both indictments. Some of these transactions took place outside the bank in places like bakeries. In some cases, complainants didn't received documentation about their investments.
The indictment names former Barcelona midfielder Arda Turan, Uruguayan goalkeeper Fernando Muslera, and former Turkish national team coach Fatih Terim among others.
Prosecutors allege in the new charges that Ates and Aydogdu, who had "close communication and relations with some of the complainants," were aware of the fund, according to Anadolu. Both Ates and Aydogdu deny any knowledge of Erzan’s actions and maintain their innocence, Anadolu reported.
Denizbank announced Aydogdu’s resignation from his position as deputy general manager last week. In response to the developments, the bank, which has been denying any wrongdoing, issued a statement on Tuesday. It criticized the leak of details to the press, arguing that it violated the principle of presumption of innocence. The bank stated that such leaks "trample on the most fundamental principle of criminal law protected by the constitution — the presumption of innocence and the right not to be tarnished."
