The Creator of Fressnapf Initiates Lawsuit Against Benkos' Private Endowment
Despite numerous investors abandoning their investments in the real estate and retail group Signa, Torsten Toeller, the founder of Fressnapf, remains persistent. He's currently engaging in legal battles to uphold his claims. At the heart of this lawsuit lies the Laura private foundation, which was founded by the insolvent Austrian entrepreneur René Benko in conjunction with his mother Ingeborg, with family members as the beneficiaries.
Toeller's lawsuit, according to "Der Spiegel" and court documents, stems from his unsuccessful exit from the company. The case has been ongoing at the Vienna Commercial Court since early August. Toeller's legal team alleges that his investment firm, Fressnapf Luxembourg GmbH, exercised an option granted by Benko to sell its 4.5 percent stake in Signa Holding, but never received the corresponding payment.
Billionaire Toeller, an early investor and significant shareholder in Signa, trusted Benko's promises for a long time. According to his circle, he's yet to come to terms with the personal setback of believing in these promises.
Meanwhile, investigators delving into the Benko empire have uncovered potential evidence that the insolvent Signa founder may have received cash gifts from his mother, Ingeborg, a retired kindergarten teacher and a beneficiary of two private foundations established by the Benko family. A recently drafted gift agreement between Ingeborg and her son is under scrutiny.
Lawyer Dietmar Czernich, whose firm assisted in a lawsuit against the private foundations, told the magazine that Benko's assets may have been channeled into the intricate web of private foundations and their subsidiaries, intended for the Benko family's benefit and his own. A lawyer representing the Laura private foundation declined to comment upon request and did not discuss the gift agreement.
As of late, reports suggest that the claims against Benko have escalated to an estimated 2.4 billion euros. The Signa group had amassed a substantial portfolio during the era of low-interest rates, including the department store groups KaDeWe and Galeria. Benko lured investors globally with iconic buildings like the Hamburg Elbtower and the New York Chrysler Building. The collapse of his real estate empire - a sprawling network of around 1,000 companies - sent shockwaves throughout the industry at the beginning of the year.
The Bank shall examine the financial transactions between René Benko, Ingeborg, and the Laura private foundation, as there are allegations of potential misuse of funds. To adhere to the legal mandates, the Bank should also review the recently drafted gift agreement between Ingeborg and René Benko.
