Istanbul Prosecution Completed Procedures for 8 Suspects Arrested in Organized Crime Investigation

The procedures of 8 suspects detained within the scope of the investigation into “establishing an organization for the purpose of committing crimes”, “illegal betting”, “usury”, and “money laundering from crime-related assets” conducted by Istanbul Republic Prosecution have been completed at the police station.

The suspects were taken to Istanbul Courthouse in Caglayan.

The suspects, whose statements were taken by the prosecution, were referred to the duty judge of the peace.

The court decided to arrest 6 suspects and release 2 suspects under judicial control.

Warrants were issued for 2 suspects identified to be abroad within the scope of the investigation.

PROSECUTOR’S STATEMENT ON THE INVESTIGATION

In the statement made by the prosecution, it was stated that a strong suspicion of crime was detected regarding the laundering of crime proceeds obtained from “violation of the Law on the Regulation of Betting and Chance Games in Football and Other Sports numbered 7258” and the income from “pos-usury” crimes through Ozan Electronic Money Inc., under the investigation conducted into “establishing an organization for the purpose of committing crimes”, “illegal betting”, “usury”, and “money laundering from crime-related assets” by the Terrorism Financing Prevention and Money Laundering Investigation Bureau.

It was stated in the statement that in the financial examinations conducted, it was evaluated that the company’s electronic money institution status was used to bring crime-related assets into the financial system under the guise of legitimate commercial activities.

ALLEGATION OF POS USURY

In the investigation, it was stated in the statement that reports prepared by MASAK, the Central Bank of the Republic of Turkey, and independent audit firms were examined, and it was understood that crime proceeds were transferred through virtual POS devices and included in the system.

The reports stated that transactions with cards coming from high-risk countries such as Libya and Iraq, with high amounts repeatedly made, were not prevented, necessary actions were not taken despite alarms, the same cards were used in different member businesses in short intervals, and this situation was found to have the nature of money transfers and pos-usury rather than real commercial activity.

It was also emphasized that Ozan Özerk, the owner of Ozan Electronic Money Inc., provided money flow under the name of “insurance premium” through Aveon Global Insurance Inc., of which he was a partner, and the company was controlled through Aveon Global Holding based in London, stating that crime proceeds were brought into the financial system by giving the appearance of insurance premium or commercial transactions and laundering.

CONFISCATION OF ASSETS VALUED AT 402 MILLION LIRA

As a result of the financial analyses conducted within this scope, it was stated in the statement that approximately 402 million lira worth of assets, including 7 companies, 3 residences, 5 plots, and 4 vehicles, were identified, simultaneous operations were carried out for 10 suspects and 7 companies subject to detention warrants, and confiscation procedures were carried out for their assets.

It was stated that Ozan Electronic Money Inc., which was found to play an active role in bringing income obtained from crime into the financial system, was assigned a trustee by the Savings Deposit Insurance Fund (TMSF) by the Istanbul Duty Peace Judge in order to protect the financial structure and prevent the destruction of evidence.