No bail possible

Benko arrest: these are the accusations

Here Benko drives up to JA Josefstadt ...

(Bild: Antal Imre/Krone KREATIV)

"What lasts a long time...", the injured parties in particular must have thought in view of the arrest of Signa founder René Benko. The allegations made by the economic and corruption prosecutor's office are serious and pre-trial detention has been requested. And as the "Krone" has learned, there is also no possibility for Benko to be released on bail. In the meantime, the record-breaking bankrupt has arrived at the Josefstadt prison in Vienna. 

Specifically, Benko was arrested on Thursday for "risk of concealment and risk of committing a crime", according to the WKStA. Benko's handcuffs clicked in his office in Innsbruck. He is said to have "falsified an invoice and attempted to conceal assets and evade access by the authorities, trustees and creditors", the statement continued. Around midday, it was announced that Benko had been questioned in the meantime. He did not wish to comment in an initial interrogation.

Benko was transferred to Vienna
It is now certain that Benko has been transferred to Vienna, the "Krone" was live on location in Josefstadt. Those responsible did not want to answer whether the accused would be placed in solitary confinement. It is a matter of temporary accommodation. There will be no more dinner on Thursday evening. A decision will be made in Josefstadt correctional institution regarding pre-trial detention. A decision is expected as early as Friday.

The judge responsible is based in the federal capital, as is the WKStA. The arrest had been approved in advance by the competent regional court for criminal matters in Vienna. A decision must now be made within 48 hours as to whether the record bankrupt will be remanded in custody.

Benko is now sitting in a cell in Vienna.

(Bild: Antal Imre/Krone KREATIV)

The Signa case is likely to keep the judiciary busy for some time to come.

(Bild: Krone KREATIV/APA/EXPA/JOHANN GRODER, EVA MANHART / APA / picturedesk.com)

No chance of bail
According to information from "Krone", there is no chance of being released on bail. The law only provides for this possibility if the reason for detention is the risk of absconding ...

Furthermore, several house searches were also carried out on Thursday in Benko's offices, in the posh "Chalet N" in Lech and in Benko's Viennese residence on Fleischmarkt. "Assets to be secured and relevant documents were seized and data carriers and data were confiscated, which are now being analyzed," the WKStA announced.

The allegations against Benko at a glance: 

• Danger of committing a crime: As the "Krone" also reported several times, the WKStA assumes that Benko is still the "de facto ruler and beneficial owner of the Laura Private Foundation". However, he is said to have concealed this as part of his personal insolvency. In doing so, he concealed his assets and prevented the assets held by the foundation from being accessed by the authorities, trustees and creditors, according to the judicial authorities. 

• Risk of concealment: Benko is alleged to have subsequently issued an invoice and thus falsified evidence, the WKStA further explains. Specifically, this relates to "three high-priced firearms", which he is said to have removed from the reach of the authorities and creditors. Benko's extensive collection of weapons was repeatedly the subject of investigations, as the bankrupt owned several high-priced hunting weapons. However, as reported, the invoice for a "stalking rifle with engraving" was issued to Signa Holding - not to Benko himself. 

• Capital increase through money carousel: This allegation concerns the actual core of the "Signa system". According to the WKStA, Benko allegedly induced shareholders of Signa Holding Investments to invest in the company as part of a capital increase. To this end, he allegedly suggested that he himself would also inject money through the Benko family private foundation. In doing so, he allegedly passed off some of the deceived shareholders' investments as his own contribution to the capital increase by transferring funds across several companies.

• Suspected breach of trust: Signa Holding GmbH is alleged to have sold a Luxembourg investment company including the associated villa on Lake Garda (Villa Eden Gardone) to the Liechtenstein INGBE Foundation ("Ingeborg Benko"), but without sufficient consideration.

• Suspicion of fraudulent crida: As the string-puller and beneficiary of the Laura Private Foundation, Benko is alleged to have concealed his true assets and continued to keep the assets in the foundation out of the reach of the authorities, trustees and creditors - including in the context of his personal insolvency. "Furthermore, the accused is alleged to have concealed assets such as high-priced weapons, watches and other items or sold them without adequate consideration, thereby preventing or reducing the satisfaction of creditors", according to the WKStA.

WKStA teamed up with German authorities
A Joint Investigation Team (JIT) was also recently formed with the Berlin and Munich I public prosecutor's offices, the authority also announced: "This makes it possible to investigate the complex of proceedings across borders in a less bureaucratic and more efficient manner."

The specific case in question is a "new line of proceedings", as Benko is now also accused of investment fraud in the "Project Franz" at Bahnhofsplatz in Munich. He is listed as a defendant by the German authorities together with another person.

They are alleged to have induced managers of a foreign sovereign wealth fund to invest in the real estate project by means of bonds. In fact, the bond proceeds were not invested in full in the agreed project, but a large part of the money was used for the wrong purpose.