Local reports said authorities moved on Saturday to detain high level figures tied to market oversight. Efforts to reach Usca through the SPK were unsuccessful, and he has not made any public statement since his reported arrest.
The Istanbul Chief Public Prosecutor's Office said Usca was detained on Tuesday. His four year stint at the SPK ended on Oct. 31. Broadcaster NTV likewise said Muhammet Erisen, who serves as deputy chair at the Banking Regulation and Supervision Agency, had also been taken into custody, though it did not cite a source. The agency could not be reached for comment outside normal business hours.
The investigation centers on alleged manipulation in investment funds. In mid September, several prominent funds concentrated in lightly traded shares failed to meet redemption requests, setting off an industry downturn that affected nearly 500,000 investors.
Regulators responded by ordering the wind down of 131 funds worth about 20 billion dollars. The net has since stretched to politicians and finance leaders, among them a deputy chairwoman from President Recep Tayyip Erdogan's ruling AK Party as well as the head of the country's stock exchange.
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On Saturday, authorities once more detained Yunus Arinci, who heads Turkey's market clearinghouse as its CEO. After first being questioned, he resigned on Monday and then declined to comment. This week, Justice Minister Akin Gurlek said investigators had identified what he called an organized criminal network involved in market fraud that reached the highest tiers of the financial bureaucracy. He also noted that the count as of Nov. 3 was 433 suspects, with 112 held in jail pending trial.
The fallout is large in scope, with forced liquidation of 131 funds and a wider probe into market conduct. If you had exposure to those funds or the affected corners of Turkish equities, liquidity and pricing may stay choppy until the legal dust settles.
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