Corporate Fraud Investigations in Turkey

Corporate Fraud Legal Investigation Turkey - Turkish Law Firm

Corporate fraud is no longer an abstract risk for businesses operating in Turkey—it is a real, quantifiable threat that affects companies of all sizes, across every sector. From procurement manipulation and kickback schemes to embezzlement, document forgery, and unauthorized data transfers, corporate fraud in Turkey can take many forms. While most cases begin as internal concerns—unusual spending, whistleblower complaints, or inventory inconsistencies—they often escalate quickly into full-blown criminal investigations. At this point, companies face both reputational damage and legal exposure, particularly if compliance obligations were ignored or response procedures were improperly handled.

At ER&GUN&ER Law Firm, our English Speaking Turkish Lawyers advise corporate clients on every phase of corporate fraud investigations in Turkey. Whether the case begins with an anonymous internal report or a sudden audit by public prosecutors, we help clients investigate thoroughly, respond lawfully, and defend their interests before both civil and criminal courts. As a best lawyer firm in Turkey for white collar defense and corporate law, we blend forensic detail with strategic legal analysis to protect executive leadership, board members, shareholders, and business continuity. Our team also works with multinational compliance teams to ensure internal processes meet Turkish and global standards simultaneously.

Common Types of Corporate Fraud in Turkish Companies

Fraud within companies can take many shapes, and its legal classification under Turkish law depends on the method, the persons involved, and the damage caused. The most common forms of corporate fraud in Turkey include:

  • Falsified invoices and inflated procurement contracts
  • Misappropriation of company funds or unauthorized transfers
  • Payroll fraud and fictitious employee records
  • Asset stripping and deliberate undervaluation of company property
  • Undisclosed conflicts of interest and side-deals with suppliers
  • Manipulated inventory and warehouse reports
  • Corruption in public tender participation or bid rigging

Our Turkish Law Firm helps clients determine whether the conduct falls under criminal fraud (Articles 155, 157, 158 of the Turkish Penal Code), abuse of trust, breach of fiduciary duty, or accounting violations subject to tax enforcement. Early legal classification is key to choosing the right investigative method, determining criminal exposure, and preparing board-level response strategies. Our corporate fraud legal strategy model distinguishes internal compliance violations from prosecutable crimes, and we design layered response mechanisms accordingly.

How Internal Investigations Work in Turkish Companies

When fraud is suspected within a company, the first step is often to launch an internal investigation. In Turkey, this process is typically overseen by the board of directors, general counsel, or a compliance committee—often with the assistance of outside legal counsel and forensic auditors. The goal is to determine the scope of the misconduct, identify responsible individuals, assess financial damage, and evaluate the company’s legal exposure. This is particularly critical because actions taken (or not taken) during the early phases of a fraud allegation can determine how prosecutors and regulators treat the company later.

Our Turkish Law Firm has advised clients on dozens of internal investigations in Turkey, guiding them through witness interviews, electronic data reviews, and financial tracing. We ensure that each investigation is legally defensible, properly documented, and aligned with Turkish labor, tax, and criminal law. When necessary, we coordinate whistleblower protocols, suspension notices, and evidence preservation orders to protect the integrity of the inquiry.

From Internal Audit to Criminal Prosecution

Once internal findings indicate probable misconduct, companies must decide whether to file a criminal complaint, seek restitution through civil court, or take disciplinary action only. Under Turkish law, certain forms of corporate fraud—especially those involving misappropriation, forgery, or corruption—must be reported to the public prosecutor. Failure to report can itself become a liability for the company and its executives, especially if shareholders later claim complicity or gross negligence. In practice, prosecutors can initiate investigations based on complaints, tax audits, or tip-offs from third parties—even without the company’s knowledge or consent.

Our English speaking Turkish lawyers represent companies, executives, and individual employees in criminal investigations into corporate fraud in Turkey. We assist clients in managing prosecutor interviews, preparing formal statements, protecting rights against self-incrimination, and pursuing defense strategies in white collar crime prosecutions. We also manage parallel civil litigation, including shareholder suits and indemnity claims, that often arise from the same incident.

Legal Risk Management and Executive Liability

Corporate fraud does not only harm the company—it can expose directors, executives, and board members to personal civil and criminal liability. Under Turkish Commercial Code Articles 549–553, members of the board may be held jointly liable for losses caused by their failure to supervise, prevent fraud, or disclose irregularities in a timely fashion. Similarly, under the Penal Code, executives may face criminal exposure for failing to implement effective compliance controls, or for tolerating misconduct within their departments.

As a best lawyer firm in Turkey in corporate litigation, we help directors build a robust defense and minimize personal liability through evidence preservation, board resolutions, internal audits, and prompt legal notification. We also draft internal bylaws, risk reporting systems, and whistleblower policies to reduce future risk and establish clear governance safeguards.

Internal Legal Resources for Fraud Compliance

Frequently Asked Questions (FAQs)

  • What qualifies as corporate fraud in Turkey? Acts such as embezzlement, fake invoicing, falsifying accounts, unauthorized transfers, or procurement kickbacks are all considered fraud under Turkish law.
  • Can companies investigate employees for fraud? Yes. Employers are entitled to launch internal inquiries but must respect employee rights and Turkish labor law limits.
  • Is a criminal complaint mandatory? Not always, but certain types of misconduct may carry a duty to notify authorities—especially when public funds, shareholders, or tax fraud are involved.
  • Can a company be criminally prosecuted? Legal entities are not criminally liable, but their directors, officers, and employees can be prosecuted individually.
  • How long do fraud investigations take in Turkey? Internal investigations may take weeks to months. Criminal cases can last 12–24 months depending on evidence and court scheduling.
  • Do companies need a lawyer during an internal investigation? Absolutely. Legal oversight is critical to protect evidence, maintain privilege, and structure lawful procedures.
  • Can employees sue the company after being investigated? They can if procedures were not followed, if privacy was breached, or if termination was unjust. Legal support reduces this risk.
  • What’s the role of forensic auditors? They help trace financial irregularities, analyze account books, and support the legal team with data-driven evidence.
  • Can a whistleblower remain anonymous? Yes. We structure whistleblower channels and investigate claims without compromising confidentiality unless required by law.
  • How can a Turkish Law Firm help? We design the investigation, defend your interests in court, advise on reporting obligations, and structure future prevention measures.

Respond Strategically to Corporate Fraud in Turkey

Corporate fraud is not just a legal issue—it’s a test of a company’s integrity, resilience, and leadership. Whether the misconduct stems from a single employee or a systemic failure, how the organization responds will determine not only legal liability but also public perception, investor trust, and internal culture. In Turkey, the legal landscape surrounding fraud is rigorous, and companies are expected to act swiftly, document thoroughly, and cooperate responsibly—without exposing themselves to unnecessary risk or liability.

At ER&GUN&ER Law Firm, our English Speaking Turkish Lawyers assist clients in building effective response systems, conducting lawful and efficient internal investigations, and managing litigation risks from whistleblower complaints to criminal prosecution. As a Turkish Law Firm recognized for its expertise in corporate law and white collar defense, we not only help our clients survive fraud incidents—we help them emerge stronger, more compliant, and more trustworthy in the eyes of regulators and the public. If your company is facing signs of internal fraud or is already under scrutiny, now is the time to act—with strategic legal counsel by your side.