Bank executives face prison in pyramid scheme case

ISTANBUL

Private lender Denizbank head Hakan Ateş is facing charges of fraud linked to a $44 million pyramid scheme that allegedly duped renowned footballers Arda Turan and Fernando Muslera, as well as coach Fatih Terim.

Prosecutors have also charged Mehmet Aydoğdu, an executive board member at the bank, with the case set to be merged with an ongoing trial against Seçil Erzan, a former branch manager accused of orchestrating the scheme.

Erzan allegedly lured 21 individuals into investing in a fictitious "secret special fund" promising lucrative returns.

The indictment said she could not have handled the significant sums of money involved without the knowledge or instructions of Ateş and Aydoğdu. It highlights transactions, such as a high-value loan to Turan and the settling of Terim’s loan debt, as evidence implicating the two executives.

Each defendant faces a potential sentence of 72 to 240 years if convicted.

In his defense, Ateş claimed he acted swiftly upon discovering the fraud on April 7, 2023, filing a criminal complaint and cooperating with authorities. He denied any involvement.

"The establishment of any fund requires the permission of [Capital Market Boards of Türkiye] SPK. It is out of the question for us to take any initiative in this regard," he said.

"These funds are open to the whole world over the web. A hidden, secret, private fund is not feasible in any way, either in our bank or globally."

Aydoğdu, meanwhile, attributed his involvement in the case to his support for Galatasaray, the football club associated with many of the complainants. "I have no interest or knowledge in the matter," he said.

The prosecution claims Erzan partially repaid some investors, including prominent business figures, but failed to return principal amounts or promised returns to most victims.

In August, Terim rejected claims that he encouraged several footballers to provide money to the fund. He accused the bank and Erzan of exploiting his reputation and financial resources for their own gain.

For his part, Erzan claimed to have significantly improved the financial standing of the celebrities involved.

"Their cars were upgrading to the next model. They were buying fields. They were earning money three, five or 10 times their income," she said.