René Benko, the Austrian real estate investor & founder of Signa Holding, was arrested at his villa in Innsbruck on January 23, 2025. The Vienna-based Vienna-based economic and corruption prosecutor's office (WKStA) ordered the arrest after serious allegations were made against him. The main charges include fraud and insolvency offenses as well as the concealment of assets. In addition, there is a risk of concealment and the danger of committing further crimes, which led to his arrest.
The investigations against Benko, who is considered the de facto ruler of the Laura Private Foundation, have their origins in the insolvency of Signa Holding in November 2023, which is considered the largest bankruptcy in Austrian economic history. Benko is accused of deliberately hiding the assets of his companies in order to make it more difficult for creditors to enforce their claims. Specific allegations include:
- Balance sheet manipulation
- delay in filing for insolvency
- breach of trust & damage to creditors.
In particular, he is accused of systematically concealing losses and debts in the balance sheets of his companies, delaying the actual financial situation of Signa Holding and misusing company funds. It is also suspected that he deliberately shifted assets in order to avoid creditor claims.
The investigations extend across several countries.
In Austria the WKStA is investigating Benko for the aforementioned offenses. In Germany public prosecutor's offices in Munich & Berlin are involved, which are also investigating suspicions of money laundering, insolvency fraud and embezzlement. In Italy an investigation by the public prosecutor's office Trento on suspicion of the formation of a criminal organization & anti-mafia investigations. Also in Liechtenstein there are also investigations into money laundering and insolvency fraud. The investigations are based on telephone surveillance, message analysis and witness statements.
If Benko is found guilty, this could have serious consequences. The immediate paralysis of Signa Holding and the possible demise of the affiliated companies could be imminent, which could lead to an enormous burden for creditors and investors. Creditors could face claims amounting to 2.4 billion euros which could result in the break-up of Benko's real estate empire. Subsidiaries of his group are also threatened by possible insolvency. Furthermore, the investigations could lead to the confiscation of assets.
Benko is part of an extensive network of business partners and investors. The $RBI (+1,58 %) is the largest creditor with 750 million eurosand has also $UCG (-1,56 %) has granted significant loans to Signa. Other investors, such as the RAG Foundation, Fressnapf founder Torsten Toeller and Klaus-Michael Kühneare closely associated with Benko.
Political networks also play a role, as former politicians such as Joschka Fischer and Ole von Beust worked as lobbyists for Benko. In addition Alfred Gusenbauer consulting services to the value of 6 million euros were invoiced.
Insurance companies and banks involved in the Signa network also bear financial risks. A total of 46 insurance companies have done business with the Signa Group, with 9 insurers having invested more than 1% of their portfolio in Signa. The complex network and interdependencies mean considerable financial exposure for all partners involved.
