VIENNA: Austrian prosecutors have formally charged Rene Benko, the disgraced founder of the failed Signa property empire, with insolvency-related fraud. The former billionaire has been detained for over five months as authorities investigate multiple financial crimes.
The Central Prosecutors’ Office for Economic Crimes and Corruption (WKStA) alleges Benko diverted assets that should have repaid creditors, including transferring funds to a trust benefiting his immediate family. He denies all accusations.
Key allegations include a questionable 300,000-euro gift to relatives and a 360,000-euro rental advance deemed unjustifiable. The case forms part of a wider probe into suspected fraud, with total damages estimated at 300 million euros.
Investigators also accuse Benko of misrepresenting shareholder investments, fraudulently obtaining COVID-19 relief, and misusing sovereign wealth funds for a Munich property project. No further suspects have been named. - Reuters
