We usually warn people about the danger of Ponzi schemes and why they should avoid them, but how about an asset management company which appears to be legit and runs a clean investment on the surface, like trading stock, but in reality they are running a ponzi scheme like a business, which will be less suspicious by victims.
This is a recent case where over 455,000 investors were victims of Ponzi schemes like investments in an amount reaching $18bn and, as usual, issues always come when investors want to start withdrawing their money, which is in shares, but it was difficult for them to sell it.
The founder of Tera Yatırım, a Turkish brokerage whose fund-management subsidiary reported missed payments last week, will be held in custody pending trial.
The arrest of Emre Tezmen, along with four other people, comes as investors in 131 Turkish funds face a wait of up to six months while their holdings are sold, with no certainty yet about how much money they will get back.
The crisis began when some funds, including those run by Tera Portföy and Pusula Portföy, struggled to pay people trying to withdraw their savings. They held large stakes in shares that were difficult to sell quickly as selling too many at once would drive down prices and reduce the money available to repay investors.
1.
Turkey arrests Tera chairman as ‘Ponzi-like’ fund probe affects 450,000 investors 2.
Turkey arrests Tera chairman as ‘Ponzi-like’ fund probe affects 450,000 investors 
