‘Fairy Tale’ turns into a lie: Cash payments and shell companies! 885-year prison sentence requested

In the indictment prepared by the Istanbul Chief Public Prosecutor's Office's Bureau of Investigation for Laundering Crimes, it was stated that following a complaint filed against the partners, managers, and some employees of the companies operating the 'Burj Al Babas' project, a report was obtained from MASAK (Financial Crimes Investigation Board). Based on this report, financial analyses determined that the suspects, who were managers/partners of the companies, had committed the crime of qualified fraud in complicity.

The indictment stated that the proceeds obtained from this crime were laundered through methods such as inter-company money transfers, cash withdrawals, and capital transfers to shell companies, and that these transactions were intended to conceal the illicit source or create a legitimate impression. It was further noted that the proceeds of crime were laundered through various operations, including moving funds abroad, and that numerous pieces of evidence regarding these actions are included in the file.

PROMOTED AS A FAIRY TALE

The indictment stated that the Burj Al Babas project, which includes 732 luxury 'castle villas' in the Mudurnu district of Bolu, was designed as 'castle'-type residences. The project, launched in 2014, was promoted to the public as one of Turkey's largest ultra-luxury holiday villages.

It was promised that the project would be a massive facility equipped with elements such as mosques, thermal Turkish baths, beauty centers, and a shopping mall, and it was described that these villas, each approximately 325 square meters, would feature blue towers, spiral staircases, and luxury interior decor.

It was noted that buyers were promised a 'fairy tale' lifestyle, that promotional activities emphasized what the project would bring to the region and investors, and that the sales presentation during the launch was centered around the theme of realizing the dream of 'buying your own castle' at attractive prices.

59 PEOPLE FILED COMPLAINTS

The MASAK reports included in the indictment highlighted that between 2014, when the project began, and 2018, a total of 67 million 180 thousand dollars entered the companies running the project through 1,041 separate transactions, and that all those who deposited money were Kuwaiti businesspeople.

The indictment stated that the project could not be completed and that 59 people have filed complaints.

'THEY TOOK CASH PAYMENTS'

As part of the investigation, it was also determined that payments were taken in 'cash' from some customers under the pretext of 'avoiding taxes on the company and bank fees.'

It was explained that the victims were deceived with false statements, given unrealistic assurances regarding delivery dates and other matters, and that sales continued even after it was understood that the project could not be completed.

Furthermore, the indictment stated that the collected funds were not used for the project but for the individuals' own personal interests, and that they acted with the intent to defraud.

According to the report by the TMSF (Savings Deposit Insurance Fund) Department of Subsidiaries and Real Estate included in the indictment, the completion cost of the project, which is under the management of a trustee, is between 162 million dollars and 188 million dollars. It was noted that there are no payment plans or documents, the data in the accounting records is insufficient, and there is no information regarding which castle was sold to whom, what the price was, or what amount was paid.

885 YEARS IN PRISON FOR 13 DEFENDANTS

In the prepared indictment, 885 years of imprisonment was requested for each of the 13 defendants for the crime of 'qualified fraud' against 59 victims. The indictment has been accepted by the Istanbul 35th High Criminal Court to which it was sent.