How die Picture on Sunday reportedthe Munich public prosecutor’s office is investigating entrepreneurs René Benko. Accordingly, the authority initiated proceedings against Benko on suspicion of money laundering in November. According to the report, hundreds of millions of euros are said to have been brought abroad through the Austrian’s complex network of companies.
Specifically, the investigation is about the purchase and renovation of the old Hertie department store near Munich Central Station. Benko’s companies raised around one billion euros from investors and banks for the project. The Landesbank Hessen Thüringen is said to have invested 450 million euros, the Raiffeisen Bank International AG 120 million euros and the Stadtsparkasse München 70 million euros. Benko’s companies, reports the Bildhad provided lenders with greatly inflated information about future rental income in order to obtain higher loans at better conditions.
Hidden fortunes?
A large part of the money then flowed abroad via a Luxembourg company. The German Financial Intelligence Unit (FIU) first pointed this out. The FIU reports to the German Federal Ministry of Finance. Their focus: terrorist financing and money laundering. The investigators would exchange information with authorities in Austria, Luxembourg and Liechtenstein and consider it very likely that Benko has hidden assets.
The procedure was apparently initiated when the first signs of insolvency at the Signa Group became apparent. Neither the public prosecutor nor Benko’s lawyer wanted to speak out Bild to the allegations. It is the presumption of innocence.