Signa Group Scandal Deepens: René Benko's Custody Extended in Austria, International Investigations Pile Up
Austrian authorities conduct searches at properties belonging to German suspect, Benko, in an ongoing justice investigation.
Get the latest on the expanding criminal investigation into René Benko and his Signa Group, as new details emerge from Austria and Italy.
The ongoing investigation into René Benko and his Signa Group takes another twist with recent developments in Austria. Searches have been conducted in Austria as part of German and Italian investigations into the insolvent Signa Group, with the Signa Development Selection in Vienna and objects in the city being targeted.
The Munich I Public Prosecutor's Office confirmed its involvement in the action, stating that they are investigating Benko, currently in custody in Austria, on suspicion of fraud and embezzlement in the millions. The authorities are examining whether Benko and other Signa managers defrauded a Saudi Arabian state fund, as well as whether funds were embezzled from the Signa Group.
Meanwhile, Benko is not only facing accusations in Austria. The Italian judiciary is also investigating Benko and other suspects in connection with real estate speculation, including the formation of a criminal association, manipulation of tenders, corruption, and fraud.
The Austrian and German authorities have been keeping a close eye on Benko, and his pre-trial detention has been extended by two months. The court continues to assume "serious suspicion" and the detention reason "flight risk." In response to these developments, Benko's lawyer has repeatedly rejected all allegations against him.
The 47-year-old former billionaire built a complex corporate network during the low-interest phase, which included the Galeria department store group, the luxury department store KaDeWe, and the Hamburg Elbtower project. However, Signa was eventually brought down by rising interest rates, energy prices, and construction costs.
As the investigation unfolds, more allegations and claims have been thrown at Benko. In the bankruptcy proceedings concerning his assets, a recent hearing resulted in only €39,000 of the €260 million in claims being recognized by the Innsbruck Regional Court. The majority of these claims were not recognized, but the total amount asserted against Benko in his personal insolvency proceedings is 2.7 billion euros.
The Austrian prosecutors are also taking a close look at Benko's use of foundations, including the INGBE Stiftung in Liechtenstein. The foundation sold over 360 kilograms of gold valued at around €30 million during Benko's detention, raising suspicions of diverting investor capital.
The investigation into Benko's activities continues to expand with new developments in Austria and potential implications for other countries. An international arrest warrant for Benko has been issued, with investigations extending to Italy involving over 100 searches and the arrest of nine suspects. While Benko is not currently facing specific charges in Germany, the collapse of Signa and the international investigations have significant implications for his business interests and could lead to further legal actions in Germany.
Stay tuned for updates as this story continues to unfold.
René Benko
- Austria
- Justice
- Signa Group
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The investigation into René Benko and his Signa Group is ongoing, with new developments in Austria and implications for Germany, Italy, and other countries. Here are the key updates:
Latest Developments in Austria
- Custody Extension: René Benko's pre-trial detention has been extended by two months, with the next custody review expected in May 2025. The Vienna Regional Criminal Court accuses him of running a "money carousel" during a June 2023 capital increase at Signa Holding, misleading investors, and harming creditors[1][3].
- Claims Against Benko: In the bankruptcy proceedings concerning Benko's assets, a recent hearing resulted in only €39,000 of the €260 million in claims being recognized by the Innsbruck Regional Court. The majority of these claims were not recognized, but the total amount asserted against Benko in his personal insolvency proceedings is 2.7 billion euros[2].
- Investigations into Foundations: The Austrian prosecutors are scrutinizing Benko's use of foundations, including the INGBE Stiftung in Liechtenstein. This foundation sold over 360 kilograms of gold valued at around €30 million during Benko's detention, raising suspicions of diverting investor capital[4].
International Investigations and Charges
- Italy's Investigations: An international arrest warrant for Benko has been issued, with investigations extending to Italy involving over 100 searches and the arrest of nine suspects. The accusations include corruption, criminal association, and tax law violations[5].
- Implications for Germany: While Benko is not currently facing specific charges in Germany, the collapse of Signa and the international investigations have significant implications for his business interests and could lead to further legal actions in Germany.
Overall, the investigation into Benko's activities continues to unfold with new developments in Austria and potential implications for other countries.
- The International investigations against René Benko and his Signa Group are intensifying, with reports of search operations in Austria, Austria being a part of German and Italian investigations into the insolvent Signa Group.
- The Munich I Public Prosecutor's Office is examining Benko, recently detained in Austria, for fraud and embezzlement in the millions, focusing on possible defraud of a Saudi Arabian state fund and embezzlement within the Signa Group.
- René Benko is also under investigation in Italy for real estate speculation, including the formation of a criminal association, manipulation of tenders, corruption, and fraud.
- In response to the growing allegations, Benko's pre-trial detention in Austria has been extended by two months, with a court considering "serious suspicion" and the detention reason "flight risk."
- While Signa Group was brought down by rising interest rates, energy prices, and construction costs, Benko's previous activities, like investing in businesses such as Galeria department store group and Hamburg Elbtower project, are now under scrutiny, with investigators looking into potential misuse of foundations and diversion of investor capital.
