Turkish prosecutors have moved to freeze the assets of former Family Minister Fatma Betul Sayan Kaya and her husband, Ilyas Kaya, following allegations that they profited from an investment fund scandal involving about $26.5 million.

The move comes days after Kaya, a former minister and senior member of President Recep Tayyip Erdogan’s ruling Justice and Development Party (AKP), resigned from her party position amid growing scrutiny over her alleged links to the investment crisis.

Prosecutors Order Asset Freeze

In a statement issued on Tuesday, Turkish prosecutors said they had sent a letter to relevant institutions concerning the freezing of all assets belonging to Kaya and her husband.

The prosecutors did not announce a conviction against either of them, and the allegations remain subject to investigation.

Kaya, who served as Turkey’s Family Minister between 2016 and 2018, resigned as deputy head of the AKP on Saturday. She said her decision was intended to allow any investigation into the matter to proceed independently and impartially.

$26.5m Profit Allegation

The controversy intensified after Turkey’s main opposition Yeni Parti raised questions about the couple’s alleged investment activities.

The party claimed that Kaya and her husband invested about 63 million Turkish lira, then worth approximately $1.3 million, in shares in April and later sold them in September for about 1.3 billion lira, equivalent to around $26.5 million.

Opposition politician Gokhan Gunaydin alleged that the former minister had received insider information and said his party would release further names connected to the investment scandal.

Kaya has not admitted to wrongdoing in connection with the allegations.

Investment Fund Crisis

The asset-freezing order comes against the backdrop of a wider investment fund crisis that has shaken Turkey’s financial markets.

The crisis emerged earlier in September after several investment funds reportedly became unable to meet investor redemption requests. The development contributed to a sharp decline in Istanbul’s main stock exchange.

Turkish regulators subsequently intervened, placing seven companies holding 131 investment funds into liquidation.

According to figures cited by the report, the affected funds had assets worth approximately $17 billion, while more than 455,000 individual investors were reportedly affected.

Turkish officials have described the investment scheme at the centre of the crisis as “Ponzi-like.” Investigators are examining the circumstances surrounding the collapse and allegations of improper financial activity.

Erdogan Responds to Scandal

President Erdogan held a three-hour meeting with his economic advisers on Tuesday to discuss the investment fund crisis.

The president has defended the record of his ruling AKP amid criticism from opposition parties.

Kaya’s resignation has added to political scrutiny of the scandal, although the asset-freezing order itself is part of an ongoing legal investigation rather than a finding of guilt.

Authorities are expected to continue examining financial transactions and other evidence as they investigate the allegations involving the former minister and her husband.