Austrian real estate entrepreneur René Benko has been arrested in Vienna. The prosecutor accuses him of making false statements during the insolvency proceedings of his Signa Holding to conceal and appropriate assets.
Benko was taken into custody on Thursday because the authorities consider him a flight risk and fear evidence manipulation. He is also accused of forgery.
As early as December, Italian authorities had issued an arrest warrant against Benko for irregularities in his business dealings in South Tyrol. The Vienna public prosecutor's office announced that it had established a joint investigation team with law enforcement agencies in Berlin and Munich to expedite cross-border investigations.
The arrest comes more than a year after the collapse of the Signa Group, which burdened insurers, banks, and investors in Austria and Germany with billions in losses. The prosecutor claims Benko is the beneficial owner of a family foundation based in Innsbruck, named after his daughter Laura. According to investigators, before the insolvency, more than 300 million euros were transferred to two companies associated with the foundation.
According to the investigations, Benko concealed his control over the "Laura Stiftung" during his personal bankruptcy proceedings. In this way, he deprived assets of official control and creditors. Telephone surveillance and months of investigations have substantiated the allegations, according to the prosecutor's office.
In addition, Benko is said to have falsified an invoice to protect three valuable firearms from the authorities' access. He is also accused of deceiving shareholders by feigning capital participation and concealing money transfers through multiple companies.
Another criminally relevant business involves the sale of Villa Eden Gardone at Lake Garda to a Liechtenstein foundation, which investigators classify as a sham transaction. Moreover, Benko is said to have persuaded a foreign sovereign wealth fund to invest in a Munich real estate project – funds that were ultimately misused.
A lawyer for Benko was initially not available for comment.
