Foreign Company Suspects Its Turkish Manager of Embezzlement: What Criminal Remedies Are Available? (2026 Updated Guide)

A foreign company suspects its Turkish manager of taking company funds or assets. Learn about criminal complaints, breach of trust, fraud, evidence preservation, asset tracing, bank records and recovery options in Turkey.

A foreign-owned company operating in Turkey may discover unexplained bank transfers, cash withdrawals, payments to related companies, fictitious invoices, unauthorized expenses, missing inventory or company assets transferred for the personal benefit of a local manager. In serious cases, the conduct may go beyond an internal corporate or employment dispute and create potential criminal liability under Turkish law. The correct legal characterization depends on what the manager did, the authority granted to them, how company assets came under their control, whether deception was used and what evidence can establish personal appropriation or another unlawful purpose.

The foreign company should avoid treating every accounting irregularity automatically as “embezzlement.” Turkish criminal law requires the alleged conduct to satisfy the elements of a particular offence. The first priority should therefore be to preserve evidence, prevent further losses, determine the flow of funds and identify the appropriate criminal and civil remedies.

What Conduct Should Trigger an Internal Investigation?

Warning signs can include unexplained payments from company accounts, repeated transfers to the manager or relatives, suspicious supplier invoices, payments to newly created companies, personal purchases recorded as business expenses, unauthorized cash withdrawals, missing stock, fabricated reimbursement claims, unusual commissions, duplicate payments and unexplained changes to accounting records.

One irregular transaction may have an innocent explanation. A pattern of concealed or unauthorized transactions requires closer examination.

Is “Embezzlement” a Separate Offence for Every Company Manager?

Not necessarily. The legal characterization of misappropriation involving a private company’s manager depends on the facts.

Potential offences may include breach of trust, fraud, forgery-related offences or other property and financial crimes depending on how the assets were obtained and used. The offence commonly translated as embezzlement in the strict public-law sense should not automatically be applied to every private-sector manager.

Breach of Trust May Be Relevant

Where company money or property was legitimately entrusted to a manager but was subsequently used or disposed of contrary to the purpose of that entrustment, breach-of-trust provisions may become relevant.

The exact relationship between the manager and the assets must be established.

Fraud May Be Relevant Where Deception Was Used

If the manager allegedly created false transactions, fictitious suppliers or other deceptive arrangements to obtain company funds, fraud-related provisions may need to be examined.

The prosecution will generally need evidence demonstrating more than poor management or an unsuccessful commercial decision.

Forged Documents Can Change the Case

The investigation becomes more serious if invoices, signatures, board resolutions, contracts, expense documents or other records were fabricated or altered.

Original documents and digital versions should be preserved immediately.

Unauthorized Bank Transfers Should Be Traced

Obtain the company’s complete bank records for the relevant period and identify:

the originating account, recipient, date, amount, payment description and authorization method.

Transactions should then be matched against contracts, invoices and accounting entries.

Do Not Allow the Suspected Manager to Control the Investigation

If legally and operationally appropriate, access to company bank accounts, accounting platforms, corporate email, payment systems and other sensitive systems should be reviewed immediately.

The company should preserve evidence before access rights are changed.

Preserve Digital Evidence

Relevant evidence may include corporate emails, authorized business messaging records, accounting-system logs, bank authorization records, invoices, cloud records and company-device data.

Digital evidence should be preserved in a manner that maintains its authenticity and integrity.

Do Not Illegally Access Personal Accounts

The company should distinguish its own corporate systems from the manager’s private communications and accounts.

Evidence collection should comply with applicable privacy, data-protection and criminal-procedure rules. An aggressive internal investigation should not create a separate unlawful-evidence problem.

Preserve Accounting Records

General ledgers, bank ledgers, cash records, supplier accounts, expense reports and supporting invoices should be secured before records can be altered or deleted.

Maintain backups of the original data.

Investigate Suspicious Suppliers

Determine whether suspicious payments went to genuine independent suppliers or entities connected with the manager.

Corporate registry information, invoices, bank accounts, delivery records and actual performance of services may become relevant.

Fictitious Invoices Require Detailed Review

A payment supported by an invoice is not necessarily legitimate.

Check whether goods were actually delivered or services actually performed, whether pricing was commercially reasonable and whether the supplier existed operationally.

Related-Party Payments Are a Major Warning Sign

If company money was transferred to a manager’s relative, business partner or related company, identify the commercial basis for the payment.

Relationship alone does not establish criminal conduct, but unexplained related-party payments can be important evidence.

Company Credit Cards Should Be Reviewed

Personal expenses paid using company cards may become relevant, particularly where they were concealed or falsely recorded as corporate expenses.

Separate legitimate business expenditure from unauthorized personal use.

Cash Withdrawals Require Special Attention

Cash can be harder to trace than bank transfers.

For each withdrawal, identify who authorized it, who collected the money, its stated purpose, supporting receipts and whether the amount entered the company’s cash records.

Inventory and Physical Assets Should Be Checked

Misappropriation may involve more than money.

Vehicles, equipment, inventory, electronic devices, raw materials and other corporate assets should be physically reconciled with accounting records.

Conduct a Forensic Accounting Review

For substantial losses, a forensic accounting analysis can reconstruct the movement of funds and identify transaction patterns.

A clear transaction schedule can substantially improve the quality of a criminal complaint.

Avoid Filing an Unsupported Criminal Complaint

A foreign shareholder may be angry about poor management, but criminal proceedings should not be used merely to pressure a manager in a commercial dispute.

The complaint should identify specific transactions and supporting evidence.

Who Can File the Criminal Complaint?

The appropriate complainant and representation structure depend on the affected company and its corporate governance.

If the suspected manager normally represents the Turkish company, a potential conflict must be addressed so that the company’s complaint is validly authorized and pursued by an appropriate representative.

Review Corporate Representation Authority

Examine trade registry records, articles of association, signature circulars, board resolutions and powers of attorney.

This is especially important where the suspected person remains registered as an authorized manager or director.

Consider Removing Banking Authority Immediately

Where there is an ongoing risk of further transfers, the company’s authorized corporate bodies should consider lawful steps to change banking and payment authority.

Banks should receive properly executed corporate documents where necessary.

Criminal Complaint to the Public Prosecutor

Where sufficient evidence indicates a possible criminal offence, a complaint can be submitted to the competent public prosecutor’s office.

The complaint should present the events chronologically and attach organized supporting evidence.

A Good Complaint Should Identify Transactions

Rather than alleging generally that “the manager stole company money,” identify the dates, amounts, recipients, bank accounts, invoices and relevant authorization records where available.

Specificity allows investigative authorities to understand what should be examined.

Prosecutors Can Obtain Evidence Not Available to the Company

A private company may not have lawful access to another person’s bank accounts or protected records.

During a criminal investigation, judicial authorities can use legally available investigative powers where the statutory requirements are satisfied.

Bank Records Can Be Critical

The destination of company funds can become decisive.

If money transferred from the company was subsequently moved through other accounts, official investigation may help establish the financial chain.

Can Bank Accounts Be Frozen?

Protective measures affecting assets may potentially be available where the statutory requirements are satisfied. Such measures are not automatic simply because a company files a criminal complaint.

The application should be supported by concrete evidence demonstrating the relevant legal grounds.

Can Property Be Seized?

Depending on the alleged offence, evidence and statutory requirements, criminal-procedure protective measures concerning property may become relevant.

The prosecutor and court determine whether legal conditions exist.

Asset Recovery and Criminal Punishment Are Different Objectives

A criminal conviction does not automatically guarantee that every financial loss will be recovered.

The company should therefore evaluate civil, commercial and enforcement remedies alongside the criminal investigation.

Civil Claims May Be Necessary

The company may have claims for repayment, damages or other relief arising from the manager’s breach of duties.

The appropriate court and legal basis depend on the manager’s position and the underlying relationship.

Interim Injunctions May Be Important

Where there is a concrete risk that assets will be transferred or concealed, available interim civil measures should be evaluated promptly.

Criminal and civil protective measures have different requirements and should not be confused.

Employment Remedies May Also Apply

If the manager is also an employee, the alleged misconduct may have employment-law consequences.

Termination decisions should be handled separately from the criminal complaint and supported by properly preserved evidence.

Corporate-Law Liability Should Be Examined

A manager or director may also face liability arising from breach of corporate duties.

The company’s articles, corporate resolutions and applicable company-law provisions should therefore be reviewed.

Foreign Parent Company or Turkish Subsidiary?

This distinction is important.

If the money belonged to a Turkish subsidiary, the subsidiary is generally the directly affected corporate entity even if all shares are owned by a foreign parent company.

The corporate structure should be reflected accurately in the complaint.

Foreign Shareholders Should Preserve Investment Records

Share purchase agreements, capital contributions, shareholder loans and intercompany transfers may help distinguish shareholder funds from company assets.

This can be particularly important where the suspected manager claims that transfers were authorized by the foreign parent.

Examine Powers of Attorney

A manager may argue that broad corporate authority permitted the disputed transaction.

The existence of authority to execute a transaction does not necessarily answer whether using that authority for personal benefit was lawful, but the scope of authority is highly relevant.

Board Approval Should Be Verified

Where the manager claims that payments were approved, locate the original board or shareholder resolutions.

Suspicious signatures or resolutions should be examined carefully.

Do Not Backdate Corporate Resolutions

The company should never attempt to “repair” its corporate records after discovering misconduct by creating misleading historical resolutions.

The defense and prosecution strategy should rely on genuine records.

Interview Employees Carefully

Accounting staff, finance employees and other managers may possess important information.

Interviews should be documented appropriately without pressuring witnesses to adopt a predetermined version of events.

Preserve CCTV Where Relevant

If physical cash, inventory or documents were removed from company premises, available corporate security footage may be relevant.

Retention periods can be short, so preservation should be considered promptly.

What If the Manager Deletes Company Records?

Preserve backups, access logs and evidence of deletion.

Depending on the circumstances, deliberate destruction or manipulation of evidence may become relevant to the investigation.

What If the Manager Leaves Turkey?

Departure does not automatically terminate potential criminal or civil liability.

However, international service, evidence collection, enforcement and criminal-procedure issues can become more complex, making early action particularly important.

Can the Company Recover Money Transferred to Third Parties?

Potentially, but the legal route depends on the transaction and the recipient’s position.

A third party that genuinely received payment for legitimate goods or services presents a different case from an entity allegedly used to conceal misappropriated funds.

Review Insurance Coverage

Some companies maintain crime, fidelity, management-liability or other insurance that may potentially respond to employee or manager dishonesty, depending on policy wording.

Notification deadlines should be checked promptly.

Preserve Evidence of the Total Loss

Create a loss schedule separating:

unauthorized transfers, cash withdrawals, personal expenses, missing inventory, fictitious supplier payments and associated costs.

Avoid double-counting the same loss.

Do Not Publicly Accuse the Manager Without Evidence

Public allegations can create additional disputes.

Internal communications should remain factual and limited to persons who need the information for the investigation.

What If the Manager Claims the Dispute Is Purely Commercial?

That argument is common.

The decisive question is not the label used by either side but whether the evidence establishes the statutory elements of a criminal offence. A contractual relationship does not automatically prevent criminal liability, but a simple contractual breach does not automatically create it either.

What If the Manager Returns the Money?

Repayment can affect the factual and legal assessment but should not automatically be assumed to terminate a criminal investigation.

The effect depends on the alleged offence and procedural circumstances.

Can a Settlement End the Criminal Case?

That depends on the offence involved and the procedural framework applicable to it.

The company should not sign a settlement or waiver without understanding its potential consequences for criminal, civil and corporate claims.

Immediate Action Plan for a Foreign Company

When a foreign company suspects its Turkish manager of misappropriating corporate assets, it should immediately preserve bank and accounting records, secure corporate systems, review representation and banking authority, identify suspicious transactions, conduct a forensic accounting analysis where appropriate, preserve digital evidence, investigate related suppliers, determine the correct corporate complainant, evaluate a prosecutor complaint, consider asset-protection measures and pursue civil or corporate recovery remedies in parallel where necessary.

Frequently Asked Questions

Can a Turkish company manager face criminal liability for taking company money?

Potentially. The applicable offence depends on how the money came under the manager’s control, what the manager did with it and whether deception, document manipulation or other conduct was involved.

Is every unauthorized payment criminal embezzlement?

No. The facts must satisfy the elements of an offence. Some disputes may instead involve corporate, employment or contractual liability.

Can the foreign parent company file a complaint?

The correct complainant depends on who suffered the alleged loss and the corporate structure. If assets belong to the Turkish subsidiary, representation of that company should be examined carefully.

Can prosecutors investigate the manager’s bank accounts?

Where legally justified, investigative authorities may obtain financial evidence through criminal-procedure mechanisms unavailable to private companies.

Can the manager’s assets be frozen?

Protective measures may potentially be available where statutory requirements are satisfied, but they are not automatic.

Should the company fire the manager immediately?

Employment and corporate-removal decisions require separate legal analysis. Evidence should be preserved and ongoing access risks controlled promptly.

Can WhatsApp messages and emails be evidence?

Corporate communications may potentially be relevant, but the method of obtaining and preserving them must comply with applicable law.

Can the company recover money through the criminal case?

Criminal proceedings and financial recovery should not be treated as identical. Civil, commercial or enforcement proceedings may also be necessary.

What if fake invoices were used?

The investigation should examine the supplier, actual delivery or service, bank recipient, accounting treatment and any document manipulation.

What should the company do first?

Preserve the evidence before confronting the suspected manager. Secure bank, accounting and corporate-system records, reconstruct the disputed transactions and determine whether the facts support criminal allegations as well as civil and corporate recovery claims.

Client-Focused Legal Support for Foreign Companies Facing Manager Fraud in Turkey

Suspected manager misconduct can involve unauthorized bank transfers, fictitious invoices, company-card abuse, related-party payments, forged documents, missing inventory, asset tracing, criminal complaints and emergency recovery measures. Fırat Fesih Kaya Law Office assists foreign shareholders, international companies and foreign-owned Turkish subsidiaries facing suspected internal fraud and misappropriation in Turkey. Lawyer Fırat Fesih Kaya provides legal assistance in preserving evidence, coordinating forensic review, preparing criminal complaints, addressing corporate representation problems, evaluating protective measures and pursuing civil and commercial recovery claims alongside criminal proceedings.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey