Former Tycoon René Benko Arrested in Austria

Former real estate mogul René Benko has been arrested at his villa in Innsbruck, Austria, on suspicion of fraud following the collapse of his real estate company Signa last year. Austrian prosecutors allege Benko attempted to hide assets from creditors.

Authorities conducted searches at Benko’s properties in Lech and Vienna, according to the Austrian newspaper Kronen Zeitung. Benko, 47, once owned notable assets including the famous Berlin department store Kaufhaus des Westens (KaDeWe), the Selfridges Group, and was a co-owner of New York’s Chrysler Building.

Signa’s collapse was triggered by rising interest rates, energy prices, and construction costs, leading to Austria’s largest bankruptcy. Despite withdrawing from Signa, Benko reportedly continued to influence the company from behind the scenes.

Pressure mounted on Benko recently, with an Italian judge issuing an arrest warrant for charges including criminal conspiracy and corruption. Austrian authorities initially stated Benko would not be arrested, but his lawyer has since confirmed a court will decide on his detention within 48 hours.

Claims against Benko amount to approximately 2.4 billion euros.

Source: NOS

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