ABDULKADIR – Victims of Ihlas Finans file lawsuit against company

Victims of Ihlas Finans file lawsuit against companyBilked account holders have initiated a lawsuit against Ihlas Finans after 14 years of failure to receive their money from the failed bank, according to a lawyer representing the account holders, who spoke to Todayand#39s Zaman on Tuesday.The pro-government Ihlas Finans, under the Ihlas Holding umbrella, went bankrupt in 2001 and had its operating license revoked by the Banking Regulation and Supervision Agency (BDDK), which then liquidated the company.

The Capital Markets Board (SPK) said in a report issued the same year that Ihlas Finansand#39 financial methods resembled a andldquoPonzi scheme.andrdquoSome 75,000 account holders have not been paid a total of $450 million, as the company began failing to pay depositors in 2000 even prior to the seizure of its license and subsequent liquidation.

The bank has ceased to make any payment since 2012, when it only paid back $7 million of its debts.andldquoThere are thousands of account holders who passed away before getting their money back.

There were those sick with cancer, and those unable to perform the pilgrimage to Mecca since they could not get their money. We have many friends who have suffered and stayed homeless and unemployed,andrdquo Hadi SakIoIlu told Todayand#39s Zaman on Tuesday.

SakIoIlu is the head of an aocacy group that represents account holders who were swindled by Ihlas Finans. He said the victims of the companyand#39s shady financial practices have been struggling through both legal and political channels over the past 14 years.

After the 2001 investigation into the bank began, Ihlas Finans General Manager Ahmet Mucahid ren hopped across the pond to the US, and acquired citizenship. ren became CEO of Ihlas Holding after his father passed away in 2013.

Ihlas Holding owns the TGRT news channel and the staunchly pro-government daily newspaper Turkiye.SakIoIlu told Todayand#39s Zaman that Irfan HattaoIlu is among those on the companyand#39s liquidation board, and that this is why the repayment process has been not been conducted in an ethical fashion.

However, in a positive note for those who have long awaited payment, he also said that the government plans to involve victimized account holders in an ongoing investigation board regarding Ihlas Finansand#39 financial practices.

SOURCE: Today’s Zaman