Austria’s Economic and Corruption Prosecutor’s Office (WKStA) has been investigating real estate mogul René Benko for several months, accusing him and another top manager of the insolvent Signa group of fraud in connection with a 25 million euro bank loan. The investigation was launched in the spring and includes allegations that they concealed Signa’s financial situation.
Raids were carried out at multiple locations on Tuesday, including the Benko family’s residences, offices in Innsbruck and Vienna, and former senior employees of the group. Investigators seized a significant amount of data during the searches, including documents, cell phones, tablets, and USB sticks. This development has created challenges for the lawyers involved, as they were all in Berlin for a soccer match when the raids occurred.
The proceedings are ongoing, and additional allegations of misusing investor funds are being investigated. However, this is not the only investigation involving the WKStA and René Benko. There are already two pending proceedings before the WKStA that are unrelated to the group’s insolvency. One involves a voluntary disclosure for a failure to pay capital gains tax while the other concerns allegations of bribery involving Thomas Schmid, a former senior official in the Ministry of Finance.
The public prosecutor’s office has faced criticism for its delay in conducting raids on Benko and his associates, as evidence may have been destroyed since the initiation of criminal proceedings in March.
Benko’s lawyer confirmed that his client was cooperative and constructive during the search.
In conclusion, René Benko is facing an ongoing investigation by Austria’s Economic and Corruption Prosecutor’s Office (WKStA) over fraud allegations related to a 25 million euro bank loan extension he received from Signa Group. The investigation also involves other charges such as bribery involving Thomas Schmid and failure to pay capital gains tax by an unnamed individual. The public prosecutor’s office has faced criticism for delaying action on this case which may have resulted in evidence destruction since it began last March.