Bankrupt Austrian real estate magnate René Benko has been arrested on charges of fraud.
Benko, the founder of the bankrupt real estate group Signa, was taken into custody on Thursday due to concerns he might commit further crimes and tamper with evidence, Austrian prosecutors said.
The Austrian anti-corruption office (WKStA) accuses the 47-year-old of concealing personal assets in connection with the collapse of his empire.
He is also suspected of hiding assets held in a foundation from authorities and creditors.
Investigators conducted extensive phone surveillance and interviewed his business partners and associates.
According to Austrian media, he was arrested at his villa in Innsbruck, Tyrol.
Founded in 2000, Benko’s real estate group rose to prominence, becoming a co-owner of the famous Chrysler Building in New York and several prestigious department store chains in Europe, including Galeria.
The group, burdened by debt, collapsed in 2023 following a sharp rise in interest rates.
The case has uncovered management flaws and potentially fraudulent practices, which prosecutors are investigating in cooperation with Germany, where Signa had many projects.
The group is being dismantled to partially repay its creditors, who are from Europe, the United Arab Emirates, and Thailand, demanding several billion euros.
René Benko’s lawyer has denied all charges against the businessman.
