Six Former GKFX Executives Arrested for $29 Million Fraud
- The funds belonged to the company, not the clients.
Turkish authorities have arrested six former senior executives of Maslak-based GKFX Financial Services Limited for their alleged involvement in a massive $29 million fraud.
According to multiple local media houses, the suspects embezzled the brokerage's money by manipulating the accounting books. The alleged perpetrators have been identified as MKY, BK, C.Ö., VS, SE and RE.
Two of the suspects worked with the other suspects in providing information and technical support to the complainant companies.
The local report elaborated that the involvement of the perpetrators in the information and accounting systems of the company has prevented others to see any signs of manipulation. Additionally, their seniority in the firm and involvement in the confidential business also helped them in pulling off the fraud.
'[It] Did Not Even Impact a Single Customer'
GKFX confirmed with Finance Magnates that embezzled funds belonged to the company, and not its clients. The action against the perpetrators was, in fact, taken following a criminal complaint filed by the GKG Group. Additionally, it highlighted that the embezzlement did not impact the brokerage business, but the other group companies. GKFX offers trading services to both professional and retail clients.
The suspects parted from GKFX in the first quarter of 2020 and established a broker company called NYFX with the embezzled money. In addition, they became partners in several financial services companies, including a crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term.
"This is a former incident which happened in 2020 and did not even impact a single customer," the Group owner, Kasım Garipoğlu, told Finance Magnates.
"It is already taken care of and surfaced due to legal actions that we brought against these former employees. Our Group’s 2020 and 2021 (first quarter) results are at its all-time high, and we are growing business faster than ever."
Turkish authorities have arrested six former senior executives of Maslak-based GKFX Financial Services Limited for their alleged involvement in a massive $29 million fraud.
According to multiple local media houses, the suspects embezzled the brokerage's money by manipulating the accounting books. The alleged perpetrators have been identified as MKY, BK, C.Ö., VS, SE and RE.
Two of the suspects worked with the other suspects in providing information and technical support to the complainant companies.
The local report elaborated that the involvement of the perpetrators in the information and accounting systems of the company has prevented others to see any signs of manipulation. Additionally, their seniority in the firm and involvement in the confidential business also helped them in pulling off the fraud.
'[It] Did Not Even Impact a Single Customer'
GKFX confirmed with Finance Magnates that embezzled funds belonged to the company, and not its clients. The action against the perpetrators was, in fact, taken following a criminal complaint filed by the GKG Group. Additionally, it highlighted that the embezzlement did not impact the brokerage business, but the other group companies. GKFX offers trading services to both professional and retail clients.
The suspects parted from GKFX in the first quarter of 2020 and established a broker company called NYFX with the embezzled money. In addition, they became partners in several financial services companies, including a crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term.
"This is a former incident which happened in 2020 and did not even impact a single customer," the Group owner, Kasım Garipoğlu, told Finance Magnates.
"It is already taken care of and surfaced due to legal actions that we brought against these former employees. Our Group’s 2020 and 2021 (first quarter) results are at its all-time high, and we are growing business faster than ever."