The Signa founder is in the sights of the German money laundering special unit. While the authorities there begin their investigation, the Austrians are still keeping their feet still. The Munich public prosecutor’s office is investigating transactions that flowed abroad in the millions.
The Munich public prosecutor’s office is investigating Signa founder René Benko. According to a report in the German newspaper “Bild am Sonntag”, proceedings were said to have been initiated against the Tyrolean real estate tycoon in November. The reason: suspicion of money laundering.
Cash flows amounting to three-digit millions are examined. These are said to have been transported out of the country via Signa companies. The focus of the investigation is the purchase and renovation of the former Hertie department store near Munich Central Station. Around one billion euros were raised from banks and investors for the deal. The Landesbank Hessen Thüringen is said to have invested 450 million euros, the Raiffeisen Bank International (RBI) with 120 million and the Stadtsparkasse München with 70 million euros.
In the focus of the German money laundering special unit
As the German media reports, Benko’s companies provided lenders with greatly inflated information about future rental income in order to obtain higher loans at better conditions. A lion’s share of the money then flowed abroad through a Luxembourg company that is attributed to Benko’s family. The first indications reportedly came from the German Financial Intelligence Unit (FIU), a sub-authority of the Federal Ministry of Finance that specializes in money laundering and terrorist financing. The investigators would communicate with authorities in Austria, Luxembourg and Liechtenstein and considered it very likely that Benko had hidden assets.
The proceedings were apparently initiated when the first signs of insolvency at the Signa Group became apparent. Neither the public prosecutor’s office nor Benko’s lawyer wanted to comment on the allegations to “Bild am Sonntag”.
WKStA in Austria is still checking
According to the latest statements from the WKStA, there are still no investigations in Austria, but there are plenty of reports. As “Die Presse” reported, Signa Development investors have filed a criminal complaint with the Economic and Corruption Prosecutor’s Office (WKStA) and called for urgent investigations into the collapsed real estate group. The 22-page statement accuses “unlawful transactions”. Behind this is a whole group of international and institutional investors who are long-term lenders to Signa.
They’re not the only ones. A spokesman for the WKStA told the press at the beginning of February that the public prosecutor’s office was “continually receiving new applications” in connection with Signa and René Benko. According to “Presse” insiders, investigations are now being prepared. This has not yet been officially confirmed.
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