René Benko remains in custody – new decision in two months

Vienna. Former real estate billionaire René Benko remains in custody. The Vienna Regional Court ruled this. The court stated that it continues to believe there is strong suspicion of the crime and a risk of the crime being committed.

A new decision must be made within two months at the latest as to whether the pre-trial detention will be extended or whether the 48-year-old Austrian founder of the insolvent Signa Group will be released.

The Economic and Corruption Prosecutor's Office (WKStA) suspects Benko of, among other things, breach of trust, fraud, and bankruptcy. Several new lines of investigation have recently been added to the investigation against him. His lawyer, who has previously rejected allegations against Benko, has not commented recently on the expansion of the investigation.

According to investigators, Benko is alleged to have defrauded investors and concealed assets from authorities, creditors, and insolvency administrators. The public prosecutor's office is also recently investigating whether a multi-million dollar payment from a Signa company to a family foundation close to Benko was illegal. The WKStA has already completed a report on the initial findings of the investigation, bringing the possibility of indictment closer.

Benko had built a complex network of companies during the low-interest-rate era. He invested in, for example, the Galeria department store group, the luxury department store KaDeWe, and the Hamburg Elbtower project. In addition to internal problems, Signa was brought down by rising interest rates, energy prices, and construction costs.

RND/dpa