The supervision and audit activities by our Board revealed that person or persons, who have no permission for investment consultancy services or similar capital market transactions authorized by our Board including those against whom criminal complaints were previously filed by our Board for many crimes such as market fraud and abuse of confidence that resulted in these people being banned from market transactions, continue to mislead and thus defraud investors through private groups on social media platforms such as Facebook, Twitter, etc., as well as messaging services such as WhatsApp, Telegram, etc.
Article 107 of Capital Markets Law No. 6362 entitled “Market Fraud” has provisions on crimes with regard to transaction-based market fraud and information-based market fraud. The aforesaid provisions resolve that persons who “engage in trading activities, give orders, cancel orders, change orders or perform account activities in an attempt to create an inaccurate or misleading impression about the prices, price changes and supplies and demands with regard to the capital market instruments” and who “provide false, inaccurate or misleading information, speculations, news, comments or reports or spread and gain benefit from the same in an attempt to influence the prices and values of the capital market instruments or the decisions of investors” be punished with imprisonment for a term from three years to five years and judicial fine for up to 5,000 days.
The inspections by our Board showed that:
- The persons who established private groups on social media platforms or messaging services to lead investors, act towards the goal of gaining benefits from the selling of their own shares upon creating demands for such shares within the group;
- Those who are in charge of leading the investors within the groups, or their associates sell their shares simultaneously with their announcement of a “Buy” recommendation and
- The persons leading the investors, therefore, cause damages to the investors within the groups whereas they gain benefits by selling their shares to those investors at high prices. To this end, we would like to warn you against such persons engaging in similar kind of activities.
In this context, investors should be aware that:
- Suggestions and investment recommendations made via social media platforms or messaging services with regard to shares could be serving the goal of supporting fraudulent market transactions carried out by a certain group;
- Persons who lead investors through their posts on social media platforms or messaging services could, in fact, be pursuing the goal of creating demands/supplies for the selling or purchasing of their own shares;
- Investors who join such groups could also suffer from consequences on charges of participating in the crimes committed by those who manage such groups;
- Those investors who lack sufficient knowledge and experience in evaluating the market conditions and thus managing their investments should make their investment decisions with help from professionals by contracting with the institutions licensed to offer investment consultancy and portfolio management services as per the regulations of our Board.
Respectfully announced to the public.