Now also in Austria

Signa: Investigation into “serious fraud”

The "Soko Signa" is investigating an initial suspicion of "serious fraud", which in Austria carries a prison sentence of up to ten years depending on the amount of damage.

(Bild: EPA)

The noose around the Signa construct of Tyrolean real estate juggler René Benko continues to tighten. Now, for the first time - in addition to Germany - there are also official criminal investigations in Austria.

The latest allegation is of suspected serious fraud, according to the Public Prosecutor's Office for Economic Affairs and Corruption (WKStA). The focus is on a Signa project company that was responsible for raising capital. The investigations are therefore not directed against Benko himself - his close environment does not appear to be affected either.

A public prosecutor's investigation team and the special commission of the Federal Criminal Police Office have been entrusted with the investigation. The "Krone" had already reported that a "Soko Signa" was being set up, which is mainly concerned with possible property crimes.

A starting point for investigations may have arisen from a statement of facts submitted to the WKStA by bondholders in February. This complaint, which is available to the "Krone", concerns the suspicion of "unlawful transactions" within the insolvent Signa Development Selection AG.

The complaint denounces considerable outflows of assets from Signa Development to other spheres of the Benko empire, with which Signa Development Selection itself has nothing to do. It is literally stated that Signa Development Selection is "not involved in any of these companies". In total, this involves transactions of more than 662 million euros, which are said to have been carried out "in deliberate violation of capital market regulations". In addition, there is the fact that "the decision-makers approved some of the transactions 'with themselves' despite obvious conflicts of interest".

The WKStA reports that "numerous complaints" have recently been received in connection with Benko's Signa structure. These are generally examined for the existence of an initial suspicion under criminal law - and such an initial suspicion has now been confirmed in the case of investments that were not invested in the promised projects. In other words, investors were allegedly deceived.

The "Soko Signa" investigation team has identified an initial suspicion of "serious fraud", which in Austria carries a prison sentence of up to ten years depending on the amount of damage.

(Bild: EPA)

Managing director in their sights
However, the exact amount of damages for the allegedly defrauded investors is still under investigation. For reasons of investigative tactics, no further details on the accused and injured parties will be provided for the time being - according to initial information from the "Krone", at least one managing director is being targeted.

In the maelstrom of the biggest insolvency in Austrian economic history: René Benko. His company structure is now also being investigated by criminal investigation authorities in Germany and Austria.

(Bild: APA/dpa/Frank Rumpenhorst)

Two further investigations
Independently of this - as the WKStA has now confirmed - two further investigations are underway: one based on a voluntary disclosure under the Austrian Financial Crimes Act by managers of a Signa company due to "failure to pay the appropriate capital gains tax for a dividend distribution". Another concerns statements made by the former Secretary General of the Ministry of Finance in the CASAG complex of proceedings - this involves allegations of bribery and corruption as well as abuse of official authority.

Investigations are also underway in Germany. The Munich public prosecutor's office confirmed suspicions of money laundering at Signa companies just last week.