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.
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‘[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.
“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.”