Signa bankruptcy Four countries are investigating Signa around René Benko

The management team of the insolvent real estate group Signa around the Tyrolean company founder René Benko is currently under criminal investigation in four countries. In addition to Austria, these are Germany, Liechtenstein and Italy.

Public prosecutors in Vienna, Berlin, Munich, Vaduz and Trento are investigating suspected white-collar crime and serious fraud. A whole series of house searches have already been carried out to secure evidence.

On Tuesday, the investigations by the public prosecutor's office in Trento, Italy, came to a head. The alleged offenses range from the formation of a criminal organization, manipulation of tenders, unlawful party financing, undue influence, fraud, money laundering, unlawful receipt of benefits to the detriment of the state to various offenses against the public administration such as corruption, unlawful inducement to act, breach of official secrecy and omission of official acts. There are also accusations of breaches of tax regulations.

Allegations of fraud in Austria

The Public Prosecutor's Office for Economic Affairs and Corruption (WKStA) in Vienna is investigating the legality of the extension of a bank loan shortly before the opening of insolvency proceedings on suspicion of fraud. According to the prosecution, Benko allegedly took part in negotiations in the summer of 2023 and allegedly faked the Signa Group's economic capacity and willingness to pay. Officially, he had no function in Signa. Raids were carried out in Vienna and Tyrol, including at Benko's villa in Innsbruck-Igls.

At the same time, the WKStA is also investigating Benko on suspicion of fraudulent crida. He is alleged to have sold several assets, including a sports car and hunting weapons, without adequate consideration and thus harmed creditors.

Recently, the authorities have also been scrutinizing the luxury hotel Chalet N in Lech am Arlberg. During the coronavirus pandemic, Benko received €1.2 million in subsidies for the property. However, investigators suspect that the money was improperly received and used for private living expenses, as the chalet was frequently used by Benko himself, his family and business associates. Benko's lawyer Norbert Wess denies the allegations against his client.

Investigations also in Germany and Liechtenstein

The public prosecutor's office in Berlin is investigating, among other things, the suspected delay in filing for insolvency at a Signa subsidiary in the period from January to November 2023. The investigations are directed against Benko as de facto managing director and three other managing directors.

The public prosecutor's office in Munich has been investigating Benko on suspicion of money laundering and possible insolvency offenses since November 2023. This was prompted by suspected money laundering reports that had been received since the end of last year. Cash flows in the hundreds of millions are alleged to have been transferred from Germany to other countries via Signa companies.

The authorities are focusing on the Hertie department store in Munich, which Signa bought and restructured. Banks and investors provided around half a billion euros for this. Benko is said to have channeled a large part of the funds collected abroad via a company in Luxembourg, which is attributed to his family.

Since the spring, the public prosecutor's office in Vaduz (Liechtenstein) has also been investigating "one legal entity and one natural person" on charges of money laundering and insolvency fraud. René Benko and others are presumed innocent.

Benko already on trial for corruption in 2014

Benko already came into conflict with the justice system many years ago. In 2014, the entrepreneur stood trial together with his tax advisor for "attempted prohibited intervention" (bribes) because, according to the authorities, he wanted to bribe a former Croatian prime minister in a tax matter in Italy.

The company founder withdrew from the operational management of the real estate group and took over the chairmanship of the Signa advisory board. Benko and his tax advisor were accused of attempting to intervene in a tax case in Italy.

According to the judgments of first and second instance, Benko's initiative was to influence the then Croatian Prime Minister Ivo Sanader to influence the then Italian Prime Minister Silvio Berlusconi in order to bring about the accelerated and positive conclusion of tax proceedings. Sanader was to receive 150,000 euros in return. Benko had always denied the allegations. According to Italian law, entrepreneurs convicted of corruption are excluded from competing for public contracts and the like.

SDA