Executive named in Türkiye's fund probe found dead as first fund repayments begin

Ali Emre Balli, the board chairman of Adil Varlik Yonetim and a businessman whose name had surfaced in Türkiye's investment-fund investigation, was found dead on Tuesday, Oct. 6. He was 46. Balli also chaired the board of Adil Katilim Bankasi, a participation lender, and led the Financial Institutions Association, an industry body, according to Euronews.

The Anadolu Chief Public Prosecutor's Office confirmed his identity and said evidence was being gathered without delay and that its investigation was continuing, the daily Evrensel reported. Euronews reported that he is believed to have taken his own life.

A name in the fund probe

Euronews reported that Balli's assets had been frozen last week as part of the fund investigation and that the freeze was later lifted. Evrensel reported that restrictions on five people questioned in the probe, Balli among them, had been removed.

According to the news site Yetkin Report, Adil Varlik Yonetim is wholly owned by Mustafa Yazici. Euronews described Yazici as Balli's business partner and identified him as the son of Hayati Yazici, a deputy chairman of the ruling AK Party.

In a separate corporate matter, Adil Varlik Yonetim disclosed on the Public Disclosure Platform, known as KAP, on Oct. 6 that it was unable to make a payment due at the end of a 180-day term, Yetkin Report said. The outlet put the amount at 500 million liras of principal plus 115,890,500 liras of interest at a simple annual rate of 47%.

Payouts for more than 455,000 investors

The wider crisis, which spread from Tera and Pusula to the former market regulator, came to a head when the Capital Markets Board, or SPK, ordered 131 funds into liquidation on Sept. 17. Hurriyet Daily News reported that the decision affected more than 455,000 individual investors. On Sept. 30 the regulator cleared interim payments of up to 1 million liras per eligible investor in funds run by Tera, Pusula, Atlas and Hedef. Savers holding less than that receive their full net amount, larger balances are capped, and the liquidation starts with money market funds.

A Fund Coordination Board chaired by Vice President Cevdet Yilmaz held its second meeting on Oct. 2. Speaking in Sanliurfa a day later, President Recep Tayyip Erdogan said the government had a roadmap. "Let our citizens rest assured. The Turkish economy has the capacity to overcome this problem," he said. "Anyone who has obtained unjust gains must answer to justice." Devlet Bahceli, leader of the Nationalist Movement Party and Erdogan's governing ally, said: "The lack of oversight and supervision lies at the heart of the issue." Lawmakers from Erdogan's party have drafted legislation intended to protect investors, Hurriyet Daily News reported.

First repayments reach the banks

The first money from the liquidations began moving on Oct. 8. Ziraat Bank, which is running part of the wind-down, transferred the investor payment amounts for 17 funds to the relevant banks and brokerage firms, the Directorate of Communications said on its official social media account, as reported by the independent news site Medyascope. The 17 funds were set up by three portfolio managers: A1 Capital, Bulls and Pardus. The banks and brokers are to pass the money on to investors' accounts as quickly as possible, the directorate said. It did not give a total amount or the number of investors covered.

The liquidation of all the other funds is continuing with the relevant stakeholders, and investors will be informed once those transactions are completed, according to the statement. Funds run by Tera, Pusula, Atlas and Hedef were not among the 17.

What it means: For savers, progress will be measured by money reaching their accounts, and the Oct. 8 transfers are the first concrete step since the liquidation orders and the caps on interim payments. Most investors, including those in the Tera, Pusula, Atlas and Hedef funds, are still waiting. For Ankara, the test is whether the coordination board and the draft legislation can rebuild trust in the fund market. Establishing the circumstances of Balli's death is a matter for prosecutors.

If you or someone you know is in crisis, please seek help. In Türkiye, call 112.