Austria’s Economic and Corruption Prosecutor’s Office (WKStA) has been conducting an investigation into real estate mogul René Benko for several months, with recent searches of his villa and offices by police, special task force officers, and minibuses. The search was aimed at securing any documents related to the investigation. René Benko’s lawyer confirmed that his client was cooperative and constructive during the search.
The current investigation against Benko and another top manager of the insolvent Signa group is connected to allegations of fraud in connection with a 25 million euro bank loan extension. This accusation stems from claims that they concealed Signa’s financial situation. Raids were conducted at multiple locations on Tuesday, including the Benko family’s residences, offices in Innsbruck and Vienna, and former senior employees of the group.
During the searches, investigators seized a significant amount of data, including documents, cell phones, tablets, and USB sticks. However, this development has created challenges for lawyers involved as they were all in Berlin for a soccer match when the raids occurred. The proceedings are ongoing, with additional allegations of misusing investor funds being investigated.
In addition to the current investigation, there are already two pending proceedings before the WKStA that are unrelated to the group’s insolvency. One involves a voluntary disclosure for failing to pay capital gains tax while the other concerns allegations of bribery involving Thomas Schmid, a former senior official in the Ministry of Finance. Criticism has been directed towards the public prosecutor’s office over delays in conducting raids as evidence may have been destroyed since criminal proceedings were initiated in March.
Overall it seems like there is quite a lot going on regarding René Benko and his associates with investigations related to fraud and bribery ongoing while there are also pending proceedings unrelated to their company’s insolvency issues which raises questions about whether this issue will ever be resolved or if it will continue to drag on.
