Signa bankruptcy: Austrian public prosecutor’s office is investigating René Benko

The Austrian justice system is investigating the founder of the insolvent Signa Group, René Benko. The Economic and Corruption Public Prosecutor’s Office (WKStA) said investigations were underway against the Signa Group, its founder Benko and another person. This is about the suspicion of Fraud “Due to alleged pretense of solvency when extending bank loans,” said a spokesman for the authority.

According to a report by the Austrian ORF radio, it is about a loan of 25 million euros from an Austrian bank that would have expired last summer but was then extended. Benko is said to have deceived the lending bank about the Signa Group’s financial situation.

Benko’s lawyer denied the allegations. They are “baseless and have no basis,” he wrote in a statement. “We have already been given access to the files and will present our view of the matter to the WKStA as quickly as possible.”

Already under investigation for bribery and money laundering

The lawyer for the bank in question told Austrian radio stations that his law firm had filed complaints about suspected fraud. As the de facto managing director, Benko was directly involved – and therefore directly accused. The lawyer did not name his clients.

It was previously known that the WKStA was investigating whether Benko had tried to bribe a high-ranking Austrian tax official. In Germany, the Munich public prosecutor’s office confirmed investigations into suspected money laundering in connection with the Signa Group. Benko’s lawyers also rejected these allegations.

The Signa Group had benefited from low interest rates for years. Among other things, she invested in the Hamburg Elbtower, the Berlin luxury department store KaDeWe and the Galeria Karstadt Kaufhof department store group. It had fallen into economic difficulties due to increased interest rates, construction costs and energy prices.