Since the early hours of the morning, a large police operation has been underway in the villa of the Austrian entrepreneur René Benko in Innsbruck-Igls and in the headquarters of his insolvent company Signa in Vienna. The Austrian special operations command Cobra is also present, according to the Vienna Kronen-Zeitung on site. Photos from Austrian media show police officers in uniform and civilian clothes, but also masked officers in bulletproof vests. According to the daily newspaper Today Raids are also taking place at other Signa locations. They are expected to be completed by midday.
Benko’s lawyer Norbert Wess confirmed the operation. “Yes, a search is currently underway to secure any documents relating to the allegations that have already been reported in the media,” Wess said in writing. The authorities confirmed that Benko was behaving “cooperatively and constructively.” The police in Tyrol and the Economic and Corruption Prosecutor’s Office (WKStA) did not want to comment on the matter when asked.
Biggest bankruptcy in Austrian economic history
According to reports, eyewitnesses observed police officers transporting a metal container containing around 70 to 80 kilos from the Signa headquarters in Vienna. The approximately 6,000 square meter villa in Igls is said to have been cordoned off by forensic investigators. Benko had the “Blue Grotto of Capri” rebuilt on the property shortly before his real estate and trading company went bankrupt.
The insolvency of the Signa Group is the largest bankruptcy in Austria’s economic history. At the end of April, bankruptcy proceedings were also opened over Benko’s assets. 30 creditors made claims for around two billion euros. Only 47.3 million of these have been recognized for the time being.
Benko’s projects also included many properties in major German cities, including the Elbtower in Hamburg, the Alte Akademie in Munich, the luxury department store KaDeWe and the department store chain Galeria Karstadt Kaufhof.
Benko’s Signa Holding filed for bankruptcy in 2023. In the spring, it became known that the authorities were also investigating Benko himself in connection with the bankruptcy. The accusation is fraud due to alleged feigning solvency when extending bank loans. According to media reports, the case concerns a 25 million euro loan from an Austrian bank, during the extension of which Benko is said to have deceived the institute about the financial situation of the Signa Group last summer. Benko’s lawyer had rejected the allegations.
The background to the investigation is said to be a complaint filed by lawyer Johannes Zink. Zink is said to have confirmed that he had filed several criminal complaints on behalf of various victims. These include fraud, breach of trust and fraudulent bankruptcy. This refers to the fraudulent or grossly negligent bringing about of a debtor’s insolvency.
Specifically, there is suspicion that money was borrowed from banks and investors when the Signa Group was already insolvent. Benko could have been directly involved in this. In Germany, the public prosecutor’s office in Munich confirmed that it was investigating suspected money laundering in connection with the Signa Group.