Ex-Signa boss
Real estate investor René Benko arrested in Austria
The former boss of the real estate company Signa, René Benko, has been arrested in his villa in Austria. This was confirmed by the responsible public prosecutor’s office.
Former real estate tycoon René Benko has been arrested, according to the public prosecutor’s office. The reason for the arrest was both the risk of committing a crime and the risk of collusion.
According to the Economic and Corruption Public Prosecutor’s Office (WKStA), the 47-year-old is accused, among other things, of concealing his own assets in connection with the bankruptcy of his business empire. On top of that, he removed the assets in a foundation from the access of authorities, insolvency administrators and creditors.
Benko is also being investigated in Germany. The WKStA recently formed a Joint Investigation Team (JIT) with the Berlin and Munich I public prosecutors. This makes it possible to investigate the complex of procedures across borders more unbureaucratically and efficiently, it was said.
Creditors want billions from René Benko
The Austrian entrepreneur had built up a large portfolio with his Signa Group, which also included the German department store groups KaDeWe and Galeria. As interest rates, energy prices and construction costs rose, the nested company structure collapsed. According to the insolvency administrator, the total claims against Benko add up to around 2.4 billion euros.
KaDeWe, Galeria, Elbtower – everything that is crumbling in René Benko’s bankrupt empire
The luxury department store group KaDeWe, which is part of the Signa empire, is now apparently also insolvent. According to information from “Capital”, the bankruptcy application was submitted on Friday evening. The KaDeWe group around the eponymous Kaufhaus des Westens in Berlin generated sales of around 800 million euros in 2023. Signa operated this as a minority shareholder with a share of 49.9 percent. In 2015, Benko sold 50.1 percent to the Thai Central Group.
© Tobias Schwarz / AFP
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The Austrian is also being investigated for suspected fraud in connection with state Corona funds. It’s about aid money for the luxurious “Chalet N” in the ski resort of Lech am Arlberg. It is being investigated whether the Corona funds were used as economic support during the pandemic or misused for other purposes.
Allegations: attempted credit and bribery
Investigations into suspected loan fraud and a suspected bribery attempt were previously known. The ex-billionaire is also suspected of having unlawfully taken away parts of his assets. Benko’s lawyer has also denied these allegations.
Note: This article has been updated several times.
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Source: Stern
