Six GKFX Executives Accused of $29M Fraud Arrested in Turkey

Six Istanbul-based executives of GKFX​ Financial Services Limited, a Forex and CFDs broker, have reportedly been arrested in Turkey. Turkish police alleged that the six people have involved in a massive $29 million fraud.

According to Turkish media reports, the suspects, identified by their initials in the Turkish press as MKY, BK, CÖ, VS, SE, and RE, stole from the brokerage through manipulation of accounting books. The money embezzled was suspected to be clients funds at first. However, the company later clarified that no client money was stolen, and the $29 million actually came from GKFX's parent company, Global Kapital Group.

The broker also noted that despite the theft, GKFX​ and its parent company remain well capitalized, and are operating normally.

Some of the six suspects arrested are the broker's former executives and employees, who had left GKFX last year. The one identified as "MKY" is believed to be Murat Kutay Yildirim, GKFX's former CFO who departed in March 2020, and co-founded his own firm called ABK Holding.

Kasim Garipoglu, Chairman & CEO at Global Kapital Group noted: "This is a former incident which happened in 2020 and did not even impact a single customer. It is already taken care of and surfaced up due to legal actions that we brought against these former employees. Our Group’s 2020 and 2021 (first quarter) results are at an all time high and we are growing business faster than ever."

As Fazzaco reported earlier, GKFX also saw the departure of its former CEO Iain Rogers, who has been with the brokerage for more than two years.