American Marconi Wireless News - Turkey freezes ex-minister's assets as fund crisis grows

In a brief statement late Tuesday, prosecutors said they had sent "a letter concerning the freezing of all assets" of Fatma Betul Sayan Kaya and her husband Ilyas Kaya to "all the relevant institutions".

Turkey has been wrestling with the fallout from an investment fund scandal which erupted earlier this month with the collapse of what officials have described as a "Ponzi-like" scheme.

Following days of speculation and allegations by Turkey's main opposition Yeni Parti that she and her husband made millions trading in such shares, Kaya -- deputy head of President Recep Tayyip Erdogan's ruling AKP -- said late Saturday she was resigning.

Admitting nothing, Kaya -- Turkey's family minister from 2016-18 -- said it was about taking "political responsibility" to ensure that any investigation could be conducted "independently, impartially".

Earlier that day, Yeni said it was seeking clarification over claims the pair invested 63 million lira ($1.3 million) in April and cashed in their shares in September, earning some 1.3 billion lira ($26.5 million).

At a news conference, Yeni's Gokhan Gunaydın said it was "clear" she had received insider information and pledged the party would unveil more names this week.

On Tuesday, Erdogan held a three-hour meeting with economic aides over the fund scandal, after earlier defending his party's record.

"The AK Party is a clean party, just as its name suggests; it is a party true to its name. No one can tarnish this party's purity or stain that cleanliness," he told party cadres, offering a sharp rebuke to his political opponents.

"Without looking at their own pitch-black records, they even try to give us lessons in morality and political ethics. 'Get lost', I tell them," he thundered.

The crisis erupted in mid-September when several funds said they were unable to satisfy investor redemption demands, sending Istanbul's main stock exchange tumbling.

A day later, regulators moved in to quickly to address the crisis, placing into liquidation seven companies that hold 131 investment funds, whose assets are reportedly worth around $17 billion, with the Capital Markets Board (SPK) saying more than 455,000 individual investors were affected.

Th.Berger--AMWN