Crash of a billionaire: Signa founder Benko arrested – pre-trial detention requested

The former real estate tycoon René Benko was arrested in Austria and transferred to a correctional facility. The Economic and Corruption Public Prosecutor’s Office (WKStA) in Vienna said that an application had been made for pre-trial detention for the founder of the insolvent Signa Group. Benko is suspected of having hidden assets from creditors and authorities. The reason for the arrest was both the risk of committing a crime and the risk of collusion.

Benko was arrested in his villa in Innsbruck. He was then interrogated. He was then taken to a correctional facility in Vienna, a prison spokesman confirmed. The Vienna regional court now has 48 hours to take Benko into custody or release him again. Judicial circles said that no decision was expected on Thursday.

Investigations are also underway in Germany

According to the WKStA, house searches were also carried out in Vienna, Tyrol and Vorarlberg. Assets, data carriers and documents were seized.

The former billionaire is also being investigated in Germany. According to the WKStA, it is a suspected case relating to the so-called Franz project at Bahnhofsplatz in Munich. Benko and another suspect are said to have persuaded a foreign sovereign wealth fund to invest in the office, residential and commercial building with bonds. However, the proceeds of the bonds are said to have been used largely for inappropriate purposes, according to investigators.

Became a billionaire at a young age

The WKStA recently formed an investigation team with the Berlin and Munich I public prosecutors. This makes it possible to conduct cross-border investigations in a more unbureaucratic and efficient manner, the Austrian authorities said.

Benko, who was born in Innsbruck in 1977, began renovating attics as a teenager. He left business school without a degree and went into the real estate business. That was the start of a spectacular rise to becoming a multiple billionaire, who was also courted by politicians.

Claims against Benko over 2.4 billion euros

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 well as the Elbtower in Hamburg.

As interest rates, energy prices and construction costs rose, the nested company structure collapsed. According to the insolvency administrator, the total claims against Benko are around 2.4 billion euros.

According to his own statements, Benko is insolvent, but reports about his luxurious lifestyle have repeatedly caused a stir. The public prosecutor’s office was on his trail: his phone calls were monitored, his message traffic was evaluated, and his business partners and employees were questioned.

According to the WKStA, the investigation revealed that Benko had hidden the fact that he actually had control over a family foundation as part of his personal insolvency proceedings.

Benko is said to have falsified an invoice in order to keep three valuable firearms away from creditors, insolvency administrators and authorities. Watches and other assets were also sold hidden or without appropriate payment. Investors were deceived using a “money carousel” as part of a capital increase. Benko’s lawyer initially did not comment on the current events. So far, the lawyer has denied all allegations against Benko.

Further investigations in Germany and Italy

The Italian judiciary recently issued an arrest warrant against Benko. The public prosecutor’s office in the northern Italian city of Trento bases this on investigations into real estate speculation in the Trentino region and the neighboring region of South Tyrol. However, the arrest is not related to the Italian arrest warrant.

The Berlin public prosecutor’s office is investigating Signa on suspicion of subsidy fraud, money laundering or delaying insolvency, among other things. The numerous subsidiaries are said to have transferred loans back and forth among themselves in order to sugarcoat the economic situation. The investigation is directed against Benko and the management of the suspected daughters. According to the authority, it is the largest investigation ever conducted there. However, it is not directly related to the arrest in Vienna.