Fatih Terim sues bank amid pyramid scheme allegations

ISTANBUL

Renowned football coach Fatih Terim has initiated legal action against private lender Denizbank, seeking compensation for damages stemming from a scandal involving a pyramid scheme that allegedly defrauded prominent football players.

According to the indictment, Seçil Erzan, a former branch manager at Denizbank, is accused of orchestrating a scheme that defrauded 21 individuals of approximately $44 million. The scheme promised significant returns from a purported "secret special fund."

The trial has captivated public attention, with media reports suggesting a network led by Terim encouraged others, including notable footballers Arda Turan and Fernando Muslera, to invest in the fraudulent fund.

The former Türkiye coach issued a statement through his lawyers. While the statement did not explicitly name Erzan, it indicated that Terim was holding Denizbank accountable for the actions of its personnel.

In his first public response to what has been dubbed the "Fatih Terim fund" allegations, Terim has previously denied any involvement. He attributed the accusations to attempts to damage his reputation.

The 70-year-old is suing the bank for both material and moral damages.

The statement from Terim's legal team also mentioned that he would address the issue in detail "in due course," emphasizing his respect for the ongoing judicial proceedings.

The fraud case, widely known as the "highly profitable secret fund" scandal, involves seven defendants, two of whom are currently detained.

Prosecutors allege that while Erzan made partial payments to some investors, including influential business figures, she failed to deliver promised returns or return the principal amounts to most victims.

An Istanbul prosecutor is seeking a prison sentence of up to 252 years for Erzan on charges of "aggravated fraud" and "document forgery." Erzan has been in custody since April of the previous year.

The court has ruled to extend Erzan's detention, with the next hearing scheduled for May 24.

Other defendants, including Ali Yörük, Kerem Can, Hüseyin Eligül, Nazlı Can, Atilla Yörük and Asiye Öztürk, face potential sentences ranging from three to 85 years in prison for related crimes.

For its part, Denizbank denies responsibility for the incident and financial losses suffered by the victims.