Authorities carry out a search at the residence of René Benko, the Signa founder.
The crumbling of the Signa-Empire is causing quite a stir in the judicial system, not just in Germany, but also in Austria. The authorities in Austria are bent on gathering evidence from Rene Benko's villa in Tirol.
The police are currently ransacking Rene Benko's villa in Tirol, as confirmed by Benko's spokesperson, Norbert Wess. "A search is ongoing here, purely for securing all potential evidence related to the media-surfaced accusations on site," Wess stated in a written statement.
Benko is reportedly being cooperative and is fully participating in the proceedings. According to the newspaper "Heute," searches are also taking place at other locations. The police in Tirol and the Economic and Corruption Public Prosecutor's Office (WKStA) chose to remain tight-lipped about the matter.
In the spring, it was revealed that Benko was under investigation in connection with the bankruptcy of the Signa Group. The allegation is fraud, stemming from the misrepresentation of payment capabilities during the extension of bank loans.
Investigations in Germany
Media reports suggest that Benko may have deceived an Austrian bank with a 25-million-euro credit, the extension of which in the summer was allegedly accompanied by false representations about the financial health of the Signa Group. Benko's lawyer has denied these allegations.
The Public Prosecutor's Office Berlin is also investigating, following the bankruptcy of the Signa Group. In connection with the bankruptcy of the formerly Signa-owned Berlin luxury department store KaDeWe, the Prosecutor's Office stated that investigations are ongoing.
Preliminary investigations are being conducted regarding possible criminal investigations in connection with the bankruptcy of the Signa Group, which consisted of approximately 170 companies. "Currently, documents are being scrutinized - particularly in relation to bankruptcy offenses, embezzlement, and subsidy fraud," the Prosecutor's Office further stated. It is yet to be determined who will be charged. Furthermore, the Munich Public Prosecutor's Office is investigating in connection with the billion-dollar Signa bankruptcy for suspected money laundering and possible insolvency offenses.
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The raid at Benko's villa in Tirol is a part of the intensified investigations by Austrian authorities, stemming from allegations of insolvency and potential fraud involving Benko and the Signa Group. Benko's involvement in suspected misrepresentations related to a 25-million-euro credit from an Austrian bank is also under scrutiny.
