Further to our exclusive coverage from earlier today that GKFX UK CEO Iain Rogers had left the company, news outlets in Turkey are reporting that six of GKFX’s Istanbul based former executives have been arrested by Turkish police.

According to several news outlets in the country including Sozcu and NTV, Turkish police raided GKFX’s offices in the Maslak business district of Istanbul earlier this week and arrested six of the company’s executives, identified only as MKY, BK, CÖ, VS, SE, and RE.

Police are suspecting that the executives were involved in embezzling $29 million in client funds at the company. The Sozcu site posted a video of police (supposedly) raiding GKFX’s offices, hauling out large amounts of cash.

It is unclear if the monies were from clients of GKFX in Turkey, or if the suspected fraud involved other of the company’s subsidiaries. GKFX has regulated subsidiaries in the UK (which operates under the brand GKPro, serving institutional clients), Malta (which now operates the main “GKFX” brand in Europe), as well as Australia (FairMarkets), Indonesia (GKInvest), Cambodia and the British Virgins Islands.

The GKFX group is controlled by Turkish businessman Kasim Garipoglu, via his Istanbul based holding company Global Kapital Group. Kasim Garipoglu is the son of well known businessman Hayyam Garipoglu. Global Kapital Group, and GKFX, are sponsors of EPL team Arsenal FC.

Regarding the aforementioned resignation of GKFX UK CEO Iain Rogers, we understand that at this stage no executives at GKFX outside of Turkey (including Mr. Rogers) are under any kind of suspicion of having been involved in the suspected embezzlement. We understand that Iain Rogers left the company to protect his reputation, once the activities in the Istanbul offices were becoming more apparent.

We will continue to follow this story as it unfolds.