René Benko, a real estate magnate, is facing serious accusations from investors according to a report by German news magazine The Mirror. Allegations suggest that an asset manager for billionaire Klaus-Michael Kühne, Karl Gernandt, believes that investors in the Signa Group were deceived by Benko. Gernandt claims that Benko used a complex company structure with over 1,000 sub-companies to hide debts and obligations from investors, leading to a loss of access to properties without their knowledge. This behavior is seen as fraudulent by Gernandt and other investors who have significant financial stakes in Signa.
Benko’s lawyer denies these allegations stating that there is currently a media campaign against him and that he will address these issues through appropriate channels rather than in the media. Billionaire investors who backed him such as Robert Peugeot and Torsten Toeller are concerned about the sums they have invested in Signa which has experienced financial difficulties and bankruptcy filings in recent months.
Various wealthy entrepreneurs who invested in Benko’s ventures have expressed disappointment and regret over their involvement as the financial situation of the Signa Group worsens. Benko himself has filed for personal bankruptcy and now relies on a modest monthly income. Despite his financial struggles, his family continues to enjoy a luxurious lifestyle leading to criticism from the public and former investors.
The series of bankruptcies within the Signa Group has raised suspicion of fraud and money laundering prompting investigations by authorities in Vienna and Munich. The total claims against Signa companies exceed billions of euros making it the largest insolvency case in Austrian economic history. Accusations of fraudulent behavior and financial mismanagement continue to plague René Benko and his business empire with significant repercussions for investors
