Massive Fraud Probe: 21 Detained in Multi-Billion Gold Smuggling Scheme

A sweeping investigation by the Istanbul Chief Public Prosecutor’s Office has led to a major operation targeting irregularities in Turkey’s gold and precious metals trade. Authorities announced that 23 suspects were issued detention, search, and seizure warrants, with 21 individuals apprehended so far, while two remain at large. The probe, centered on allegations of systemic fraud and large-scale financial damage to the state, reveals an intricate network of illegal transactions spanning nearly two years.

Focus on Abuse of Currency Incentives and Illegal Export of Precious Metals

According to the official statement, prosecutors launched the investigation in response to serious accusations involving organized misuse of foreign exchange incentives, the formation of shell companies through third parties, and the execution of quota-dodging and regulation-breaking transactions in the precious metals market.

The inquiry targets explicitly claims that companies exploited the Inward Processing Regime (Dahilde İşleme Rejimi) to import gold and silver under tax-advantaged conditions, only to smuggle a significant portion of the material out of Turkey in violation of trade regulations.

These operations, prosecutors say, were allegedly structured and coordinated in a manner consistent with organized criminal activity.

A Two-Year Trail: Allegations of Massive Gold and Silver Misconduct

The investigation file reveals that companies managed by the suspects imported tons of gold and silver between January 9, 2023, and December 10, 2024, under the Inward Processing Regime. The probe revealed that a substantial portion of these precious metals never reached their intended destinations. Instead, they were transported abroad in ways that authorities describe as both unauthorized and deliberately concealed.

In addition to allegations of smuggling, investigators found that the companies may have used fake or misleading export documents, creating the illusion of legitimate trade while diverting metals elsewhere.

One discovery stood out: during export operations, gold plates were allegedly swapped with brass plates or imitation gold, allowing suspects to represent low-value items as high-value precious metals through fraudulent means. According to the prosecutor’s office, this substitution scheme resulted in an estimated 100 billion Turkish lira in public losses, calculated using current gold prices.

The scale of the alleged deception marks it as one of the most extensive precious metals fraud cases ever documented in Turkey.

Multiple Criminal Charges Filed Against Suspects

Based on the accumulated evidence—ranging from seized documents to trade records and digital data—prosecutors initiated proceedings against the suspects under several serious legal provisions. The charges include:

• Forming a criminal organization and participating in such an organization

• Fraud resulting in financial loss to public institutions and state agencies

• Violations of Law No. 1211 governing the Central Bank of the Republic of Turkey

• Violations of Law No. 4749 on Public Finance and Debt Management

• Breaching Law No. 1567 concerning the Protection of the Value of Turkish Currency

These charges indicate a complex investigation that intersects financial crime, regulatory evasion, and potential money laundering mechanisms embedded in the international gold trade.

Operations Conducted Simultaneously Across Multiple Locations

The Istanbul Chief Public Prosecutor’s Office confirmed that the large-scale operation was launched on the morning of 18 November 2025, with multiple police units executing synchronized searches at residences, warehouses, company offices, and other relevant locations.

Authorities seized financial documents, digital storage devices, and materials believed to be connected to the alleged gold smuggling and document forgery schemes. As of the latest update, detention procedures and interrogations are ongoing while efforts to locate the remaining two suspects continue.

A Case With Significant Economic and Legal Ramifications

With public losses estimated at 100 billion TL, this investigation represents not only a criminal inquiry but also a significant economic case that could have lasting implications for Turkey’s regulatory oversight of precious metal imports and exports.

As the investigation unfolds, authorities aim to determine whether the alleged network extends beyond the currently detained suspects and if similar schemes may have been replicated through other companies or intermediaries.