Turkish authorities have arrested GKFX Financial Services Ltd’s former senior executives for the alleged involvement in the massive $29 million fraud.
The six suspects manipulated accounting books and embezzled the Maslak-based brokerage’s money. Authorities have identified them as BK, MKY, VS, CO, SE, and RE.
Two of the perpetrators worked with the rest in providing information and technical support to complainant companies.
Local reports elaborated that perpetrators’ involvement in the company’s accounting and information systems prevented others from seeing any signs of manipulation.
Their seniority in the brokerage and their involvement in the confidential business also helped them pull off the fraud.
The Fraud Did Not Affect Any Single Customer
According to the GKFX, embezzled funds belonged to the firm, not its customers. They took action against the suspects after GKG Group filed a criminal complaint.
Also, it highlighted that the fraud did not affect its business but other group companies.
GKFX offers trading services to both retail clients and professionals.
The suspects left the company in Q1 of 2020 and established another brokerage company called NYFX with the looted money.
Additionally, they became partners with other financial services firms, including a crypto exchange.
Kasim Garipoğlu, the Group owner, said the incident happened in 2020, and the firm had already taken care of it. However, it resurfaced because of the legal actions that they brought against their former employees.
He added that the Group’s 2020 and 2021 Q1 results were at their all-time high and growing faster than ever.