Out for financial juggler

Arrest! The handcuffs click for René Benko

For Austria's record bankrupt René Benko, the juggling act has come to an end.

(Bild: picturedesk.com/EXPA / APA / picturedesk.com)

It's over for Austria's record bankrupt René Benko. As the "Krone" learned, the 47-year-old was handcuffed in his Innsbruck villa on Thursday morning. Among other things, Benko was under investigation for fraud and several insolvency offenses and has now been arrested. An application has already been made for his detention. 

Benko was arrested at 8.30 a.m. on Thursday at his villa in Innsbruck by order of the Public Prosecutor's Office for Economic Affairs and Corruption. Furthermore, several house searches were carried out on Thursday in Benko's offices, in the posh "Chalet N" in Lech and in Benko's Viennese residence on Fleischmarkt. 

Pre-trial detention already requested
The accusation is intentional impairment of creditors' interests in the context of the Signa insolvency proceedings, risk of concealment and risk of committing a crime. He is said to have been taken to Innsbruck prison - also known as the "Zieglstadl" - where he will be questioned by the police - pre-trial detention has already been applied for. 

Benko's lawyer Norbert Wess confirmed the arrest order, "even though I don't know it yet". A court will have to decide within 48 hours whether he will be remanded in custody.

Austria's record bankrupt René Benko has juggled it all off.

(Bild: picturedesk.com/EXPA / APA / picturedesk.com)

Austria's biggest bankruptcy
The arrest of René Benko has now put an end, at least for the time being, to what is probably the biggest economic thriller of the Second Republic: Benko had raked in billions with the convoluted structure of his company Signa, but like the Roman Empire, his empire had collapsed at some point due to its size. 

When Benko lost control of the Signa house of cards, the mountain of debt had grown to such an extent that Austria's biggest bankruptcy could no longer be averted. More and more became known about Benko's sometimes dubious business practices, his confidants and his network. 

Benko continued to pull the strings
The judiciary took action, but it was to take over a year before the handcuffs clicked for the bankrupt. Up to this point, Benko had been safe, at least on the outside, and continued to pull the strings in the background even after his official withdrawal from Signa and his foundations, as extensive research revealed. 

René Benko's villa in Innsbruck, where the handcuffs clicked for the record-breaking bankrupt.

(Bild: Birbaumer)

However, the noose tightened ever tighter, the Italian judiciary was already investigating Benko and even issued a European arrest warrant for the Tyrolean. Although the local authorities released him at the time, he has now been ordered to be arrested.  

In addition to the accusation of damaging creditors, Benko had also been investigated by the WKStA on suspicion of serious fraud and several insolvency offenses. In July, house searches were carried out in Tyrol and Vienna. However, the extent of the Signa case will probably keep the special commission busy for years to come.