René Benko scandal: How the ex-Galeria boss hid assets!

René Benko scandal: How the ex-Galeria boss hid assets!

The founder of the Signa Group and former owner of Galeria, René Benko, is currently in custody. This was announced in a current report by the Vienna Regional Court, which found there was urgent suspicion and dangers in committing the crime. According to the t online The Economic and Corruption Public Prosecutor's Office (WKStA) reports that Benko is suspected of having deliberately hidden assets in the run-up to the declaration of bankruptcy.

Benko, who took over the Galeria Karstadt Kaufhof department store chain, rejects the allegations. However, he is accused of having deposited valuable watches and cash with relatives between March 9 and May 9, 2024. A total of 229,020 euros in value disappeared in the form of eleven wristwatches, as well as an additional 8,500 euros for replacement straps and 9,400 euros for cufflinks. Investigators also found 120,000 euros in cash in a safe hidden behind wine boxes.

Current investigations and allegations

In addition to these discovered assets, a watch worth 19,000 euros and 5,000 euros in cash were found in the house where Benko's family lives. According to the investigators, the information about his assets does not match the values ​​actually found. During a search, the last watch and cash were discovered in an ammunition compartment of a gun safe that only Benko had access to.

The allegations made against Benko are not only relevant in Austria. Public prosecutors in Germany, including in Berlin, Munich and North Rhine-Westphalia, are also investigating him and other people responsible for the Signa Group for fraud and breach of trust amounting to millions. Another investigation deals with a possible illegal payment of millions by a Signa company to a family foundation in Benko's area ZDF reported.

The decline of Signa and its consequences

The financial decline of Signa, which went bankrupt at the end of 2023, not only has an impact on many investors, who filed claims of around ten billion euros, but also on the affiliated department store chain Galeria, which also filed for bankruptcy. The allegations against Benko also include moving money around in a so-called “money carousel” in order to conceal his private financial resources.

The situation surrounding Benko is also being followed closely by politicians, especially since the federal government paid 680 million euros for Karstadt Kaufhof while significant allegations against him were already known. It remains to be seen how the regional court in Vienna will decide on the extension of pre-trial detention, which will be back on the agenda in two months. Benko is suspected of having committed, among other things, infidelity and fraud.

In summary, it shows that the investigations against René Benko and the Signa Group could have far-reaching consequences both for the corporate landscape and for trust in economic practices in Austria and Germany.