Key-SDA
Criminal investigations are currently underway in four countries against the management team of the insolvent real estate group Signa around the founder of the Tyrolean company, René Benko. In addition to Austria, these are Germany, Liechtenstein and Italy.
(Keystone-SDA) Public prosecutors in Vienna, Berlin, Munich, Vaduz and Trent are investigating suspected white-collar criminal activities and serious fraud. A whole series of house searches have already been carried out to find evidence.
On Tuesday, the examination at the public prosecutor’s office in Trento, Italy, came to an end.The alleged offenses range from the establishment of a criminal institution, manipulation of tenders, illegal party financing, undue influence, fraud, money laundering, illegal receipt of benefits to the detriment of the state, to various crimes against public administration such as corruption, illegal. incitement to action, and breach of official secrecy and omission of official acts.There is also a charge of breaching tax regulations.
Allegations of fraud in Austria
The office of the Economic and Corruption Public Prosecutor (WKStA) in Vienna is investigating the legality of extending a bank loan shortly before the declaration of insolvency due to suspected fraud. According to the prosecution,Benko is said to have participated in negotiations in the summer of 2023 and is believed to have falsified the economic performance of the Signa Group and its willingness to pay. He did not officially hold any position in Signa. Raids took place in Vienna and Tyrol, including at the Villa Benkos in Innsbruck-Igls.
at the same time, the WKStA is investigating Benko on suspicion of fraudulent Krida.He is said to have sold a number of assets, including a sports car and hunting weapons, without paying due attention to creditors and suffered losses accordingly.
Recently the authorities took a closer look at the luxury hotel Chalet N in Lech am Arlberg. Benko received Corona financing of 1.2 million euros for the property during the pandemic. However,the investigators suspect that the funds were wrongfully obtained and used for private living,as Benko himself and his family and business friends often used the chalet. Benko’s lawyer Norbert Wess denies the allegations against his client.
Investigations also in Germany and Liechtenstein
The public prosecutor’s office in Berlin is investigating, among other things, the suspicion of delayed insolvency at a subsidiary of Signa between January and November 2023. The investigations are focused on Benko as de facto managing director and three other managing directors.
In Munich, the public prosecutor’s office has been investigating suspected money laundering and possible insolvency offenses against Benko since November 2023. The reason for the suspicion was money laundering reports received since the end of last year.It is said that money flows in the hundreds of millions have been transferred from Germany to abroad through Signa companies.
The authority’s focus is on the Hertie department store in Munich, which Signa bought and renovated. Banks and investors provided around half a billion euros for this.Benko is said to have sent much of the funds raised abroad through a company in Luxembourg attributed to his family.
As the spring, the public prosecutor’s office in Vaduz (Liechtenstein) is also investigating “against a legal and natural person” on allegations of money laundering and insolvency fraud, according to information there. René Benko and others are presumed innocent.
benko went to court for corruption in 2014
Benko got into a high-profile conflict with the judiciary many years ago. In 2014, the entrepreneur and his tax advisor went to court for “attempted interference with prohibition” (bribery) because, according to the authorities, he was trying to bribe the former prime minister of Croatia regarding tax matters in Italy.
The founder of the company withdrew from the operational management of the real estate group and took the chairmanship of Signa’s advisory board. Benko and his tax advisor were accused of attempting to intervene prohibited in a tax procedure in Italy.
According to the first and second judgments, on the initiative of Benko, the Prime Minister of Croatia at the time, Ivo Sanader was supposed to influence the Prime Minister of Italy at the time, Silvio Berlusconi, to carry out an accelerated and positive tax procedure. Sanader should receive 150,000 euros from this. benko has always denied the allegations. According to legal regulations in italy, entrepreneurs legally convicted of corruption are excluded from competitions for public contracts and the like.
What are the potential consequences for Signa if the allegations against its management team are proven true?
Interview between Time.news Editor and Legal Expert on Signa’s Legal Troubles
Time.news Editor (E): Welcome to Time.news, where we delve into the most pressing issues of our time.Today, we are joined by Dr. Anna Müller, a legal expert specializing in white-collar crime and corporate law. Thank you for being here, Dr.Müller.
Dr. Anna Müller (M): Thank you for having me. It’s a pleasure to discuss such an crucial topic.
E: Let’s dive right in. There’s a significant investigation happening involving the management team of the insolvent real estate group Signa, lead by founder René Benko. This is unfolding across multiple countries—Austria, Germany, Liechtenstein, and Italy.What’s the gravity of this situation?
M: The situation is quite serious. Criminal investigations spanning different jurisdictions indicate a well-coordinated effort to uncover potential fraud and corruption. Each of these countries has its own legal framework, which complicates the investigation but also reflects the severity of the allegations at hand.
E: Right, and the allegations seem extensive, ranging from fraud and money laundering to corruption and breach of official secrecy. Can you elaborate on how these charges might impact the association and its management?
M: Certainly.If proven, these charges could not only lead to heavy penalties for the individuals involved but could also result in the collapse of the company itself. Investors lose confidence in organizations that face significant legal challenges, which could lead to financial ruin for Signa. Moreover,the reputational damage can extend beyond just the business; it can also tarnish the personal reputations of the executives involved.
E: The office of the Economic and Corruption Public Prosecutor in Vienna is investigating the legality of loan extensions just prior to bankruptcy. How ofen do we see such cases in the corporate world, and what triggers them?
M: Unfortunately, cases like this are not uncommon, especially in industries with high financial stakes like real estate. A common trigger is pressure to maintain cash flow to avoid insolvency, leading to desperate and possibly illegal measures. The decision to extend loans under suspicious circumstances often raises red flags, as it can indicate potential fraud or a failure to act in the best interests of stakeholders.
E: What legal defense strategies could René Benko and his management team potentially employ given the gravity of these allegations?
M: They could argue lack of intent or knowledge regarding any alleged wrongdoing, presenting themselves as uninformed about certain actions taken by lower-level executives. They may also attempt to demonstrate that all corporate governance protocols were followed, or question the validity of the evidence gathered during the authorities’ investigations.
E: You mentioned that investigations have already included house searches aimed at finding evidence. How critical is this evidence for the prosecution’s case?
M: It’s crucial.Evidence gathered during these searches can either substantiate the allegations or provide exculpatory evidence for those accused. It can include financial records, emails, or communications that may reveal intent or conspiracy. The thoroughness of the searches and the findings will greatly impact the trajectory of the case.
E: With criminal investigations spanning multiple countries, how does international law influence these proceedings?
M: International law plays a significant role here, especially when coordinating procedures like extradition, details sharing, and the submission of laws across jurisdictions. Mutual legal assistance treaties can facilitate the investigations, making it easier for prosecutors to collaborate and share evidence.
E: Lastly, Dr. Müller, what do you think the broader implications of such a high-profile case are for the real estate sector and corporate governance in Europe?
M: This case underscores the essential need for robust corporate governance and ethical management practices within the real estate sector. As regulatory scrutiny intensifies, companies must ensure compliance not only to avoid legal repercussions but to rebuild public trust. It can very well serve as a wake-up call for businesses to prioritize integrity in operations.
E: Thank you so much for sharing your insights, Dr. Müller. The unfolding situation with Signa certainly raises many critical questions about corporate ethics and legal responsibilities.We appreciate your expertise today!
M: Thank you for having me. I’m glad to discuss these vital issues.