Mehmet Emin Karamehmet

Following initial proceedings involving a Court of Cassation reversal and retrial, an Istanbul court sentenced Karamehmet in May 2013 to 7 years, 1 month and 16 days' imprisonment for embezzlement involving more than 460 million lira of Pamukbank funds used for his own benefit and that of his companies. The Court of Cassation upheld the sentence in December 2016.

State of the evidence

Established by a court

Attribution

Directly implicated

In 2005, Çukurova signed documents preparing the sale to TeliaSonera of a stake conferring indirect control of approximately 27% of Turkcell, then chose a competing transaction with Alfa. TeliaSonera initiated arbitration. The arbitral tribunal concluded that a binding final agreement had been formed and that Çukurova had breached its obligations.

State of the evidence

Documented

Attribution

Direct responsibility

After Alfa Telecom provided financing of approximately 1.35 billion dollars secured by shareholdings conferring control of Turkcell, Alfa alleged default and appropriated the pledged shares. Çukurova contested the takeover for years before courts in the British Virgin Islands and the Privy Council, which eventually granted relief from forfeiture, allowing the shares to be recovered upon payment.

State of the evidence

Documented

In May 2013, the TMSF took control of Show TV and vehicle manufacturer BMC and initiated seizures of numerous Çukurova assets to recover public debts arising from the earlier banking collapse. The Fund explained that the group had failed to meet the repayment schedule and had not remedied the default within the period allowed.

State of the evidence

Documented

In 2008, the TMSF sought approximately 500 million dollars, including interest, from Mehmet Emin Karamehmet in respect of historic Interbank loans. According to reported findings by the Fund, before the bank was sold to Cavit Çağlar, approximately 250 million dollars had allegedly been lent to shell companies established in the names of employees or associates and then transferred to Çukurova Group. The proceedings were accompanied by measures affecting Show TV shareholdings.

State of the evidence

Documented

In June 2002, Turkey's banking regulator transferred Pamukbank, controlled by Çukurova and chaired by Mehmet Emin Karamehmet, to the Deposit Insurance Fund. Reported reasons included a capital shortfall of approximately 2 billion dollars, liabilities exceeding assets and irregular loans to group companies. Karamehmet was removed from the board, and measures were imposed on his assets.

State of the evidence

Documented

Attribution

Direct responsibility