The founder of fallen Austrian property group Signa, Rene Benko has been arrested on suspicion of fraud, prosecutors say.
Austrian prosecutors on Thursday said Rene Benko, who founded the property group Sigma, was arrested at his villa in Innsbruck.
The company became the biggest casualty of Europe’s property downturn, with creditors seeking to recover what they can since it declared insolvency.
What is Benko accused of?
“The prosecutors’ office in charge of economic crimes and corruption ordered the arrest of Signa founder Rene Benko,” a statement from the prosecutor’s office said.
It said the arrest was on suspicion of falsifying an invoice and trying to hide assets from creditors.
Benko’s Signa Holding filed for bankruptcy at the end of 2023. Among Signa’s German assets was the department store chain Galeria.
Prosecutors announced that there was “strong suspicion” of several criminal offenses.
Benko was said to be the “de facto ruler and beneficial owner” of a private foundation and to have concealed this amid his personal bankruptcy. In doing so, he allegedly concealed assets.
The complex corporate structure that Benko had established collapsed under the pressure of rising interest rates, energy prices and construction costs.
Claims against Benko amount to some €2.4 billion ($2.5 billion), according to the
insolvency administrator.
The 47-year-old is also being investigated for alleged fraud regarding state coronavirus pandemic funds.
