Insolvency scandal: René Benko in court – millions disappeared!

Insolvency scandal: René Benko in court – millions disappeared!

The Economic and Corruption Public Prosecutor's Office (WKStA) in Vienna has brought charges against the former real estate entrepreneur René Benko. The allegations concern fraudulent Krida, which constitutes a bankruptcy offense under Austrian law. This was announced today and the indictment was filed with the Innsbruck Regional Court. Benko is suspected of having set aside assets as part of his personal bankruptcy, while at the same time payment problems were foreseeable.

Specifically, he is accused of giving family members 300,000 euros, even though the financial situation of his company had already deteriorated dramatically and bankruptcy was pending. The total damage determined through the process amounts to around 660,000 euros. The WKStA further states that Benko is also being investigated for breach of trust, fraud and bankruptcy, as he is said to have deceived investors and hidden assets from authorities and creditors. The investigative scope could also expand to current proceedings in Italy and Germany, where Benko is also the focus.

Investigations and overall damage

The indictment is part of a broader investigation into the Signa Group's bankruptcy, which has hit the headlines in recent years. Up to a dozen suspects and two legal entities are being investigated in this context. The WKStA estimates the total damage at around 300 million euros. In Germany, the Munich public prosecutor's office is investigating Benko on suspicion of fraud and breach of trust in connection with the "Franz project", which also involves hundreds of millions of dollars.

The situation is particularly precarious for the Galeria department store chain, which Benko bought from the then federal government in 2019 with a loan of 680 million euros. Many branches have now been closed, most recently in Bavaria, where Galeria-Karstadt-Kaufhof locations in Munich, Nuremberg and Augsburg, among others, were closed. The closures are part of a broader trend across the retail landscape.

Background and perspectives

Benko, who has built a complex network of companies, has revealed his company's financial difficulties during a period of rising interest rates and construction costs. The Signa Group's best-known projects include the Berlin luxury department store KaDeWe and the Elbtower project in Hamburg. The charges face internal difficulties as well as external economic challenges, which could now also affect his personal assets. Benko has been in custody since January 2023.

The current indictment could be interpreted as a harbinger of further legal action against Benko, as there are additional investigations in several countries and further charges could potentially follow. From the WKStA's perspective, there is a lot at stake, and the explosiveness of the allegations will cause a major stir not only legally, but also socially and economically.

The investigation into Signa Group's insolvency will certainly remain in focus in the coming months, and the upcoming negotiations could have far-reaching consequences for the market and the companies affected. The developments surrounding René Benko are therefore of considerable interest to both investors and the public.

Further details on this case can be found on the website Review online and at BR.de.