Berlin prosecutors probe into Signa corporations
Financial Troubles and Legal Investigations: The Signa Group, a prominent Austrian company formerly run by the Tyrolean investor René Benko, is once again under the scrutiny of the law. This time, the Berlin public prosecutor's office has taken an interest in the company's affairs.
Following the bankruptcy declared by the Signa Group, which was home to approximately 170 businesses, the legal authorities are now examining more cases. The prosecutor's office disclosed that they are also investigating the insolvency of a luxury department store in Berlin that had been previously owned by Signa, known as KaDeWe.
Taking place alongside these proceedings are further investigations into potential criminal activities, with the Berlin prosecutor's office especially looking into allegations of bankruptcy fraud and subsidy fraud. The office refused to divulge potential suspects or more specific details concerning the ongoing investigation.
The degree of the Signa Group's financial issues has drawn attention not just from Berlin, but also from neighboring Munich, where prosecutors are currently delving into suspected money laundering and potential insolvency violations. The Munich prosecutors have been in contact with their German counterparts. The unraveling of Signa is also receiving attention from Austrian authorities.
What was once a financial powerhouse in Austria with interests spanning retail, real estate, and even department stores like Galeria Karstadt Kaufhof and the KaDeWe Group, is now facing legislative troubles. Galeria has recently been put up for sale to outside investors, and the real estate around the Berlin KaDeWe luxury department store is being sold, going to the Thai Central Group, a conglomerate active in both operations and property ownership.
Previously considered to be one of the wealthiest Austrians, Benko saw his wealth peak at a staggering $6 billion (5.5 billion euros) in 2023 as per US magazine "Forbes". However, by December of the same year, Benko was dropped from the magazine's billionaire roster due to the Signa Group's accumulating problems.
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- Despite the ongoing investigations by the Berlin public prosecutor's office into allegations of bankruptcy fraud and subsidy fraud within the Signa Group, the luxury department store KaDeWe, previously owned by Signa, continues its operations in Berlin.
- Rene Benko, the former Tyrolean investor who led the Signa Group, faces scrutiny not only in Berlin but also in Munich, where prosecutors are examining suspected money laundering and potential insolvency violations related to his company.
- The public prosecutor's office in Austria is also involved in the investigations, following the financial troubles of Signa Group, which was once a significant financial powerhouse in Austria, with businesses in retail, real estate, and department stores like KaDeWe Group and Galeria Karstadt Kaufhof.
