Project in Munich

Money laundering investigation against Signa confirmed

(Bild: EPA)

The Munich public prosecutor's office has now confirmed a German media report that Signa founder René Benko is under investigation for money laundering.

"Today I can confirm that the Munich public prosecutor's office has received suspicious money laundering reports since the end of last year, which, as usual, have led to the registration of proceedings," the authority said on Wednesday. According to the Munich public prosecutor's office, "the facts of the case will of course be comprehensively examined from a legal point of view, i.e. also with regard to possible other criminal offenses".

The Signa founder was not named by the authorities. However, a spokeswoman for the authority pointed out that there is no corporate criminal law in Germany - in other words, companies cannot be investigated, only individuals.

Benko's lawyer had previously told Bild am Sonntag that he was not aware of the proceedings. According to the report, Benko's companies are said to have raised almost one billion euros from banks and investors for the acquisition and development of the "Münchens neue Mitte" project.

Most of the money allegedly flowed abroad
The Benko companies are said to have made exaggerated statements about future rental income in order to obtain higher loans at better conditions. A large part of the money is said to have flowed abroad.