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Fallen Austrian tycoon Benko charged with fraud / Photo: ANGELA WEISS - AFP
NYSE - LSE
Fallen Austrian tycoon Benko charged with fraud
Austrian tycoon Rene Benko has been charged with fraud as part of a wide-ranging probe into the insolvency of his real estate empire, prosecutors said Tuesday.
Benko, once one of Austria's richest men, founded the Signa real estate empire in 2000, but the debt-laden group crumbled in 2023 in the largest insolvency proceedings in the country's history. Signa has creditors in Europe but also the United Arab Emirates and Thailand.
Signa shot to prominence with its vast portfolio including New York's Chrysler Building and several prestigious department store chains in Europe.
Prosecutors have been investigating Benko on suspicion of fraud and other offences.
Benko, 48, is charged with concealing assets amounting to some 660,000 euros ($770,000) at the expense of creditor claims, prosecutors said in a statement. He faces up to 10 years in prison if found guilty.
He has been detained in Vienna since his arrest in January at his villa in Austria's western city of Innsbruck.
More than a dozen suspects are being investigated over the insolvency, with damages currently estimated at around 300 million euros, according to prosecutors.
In December, Austrian authorities questioned Benko in Innsbruck after Italy issued an arrest warrant against him for allegedly participating in a criminal organisation.
An Innsbruck court ruled that Benko should not be extradited as the case can be probed in Austria.
(F.Allen--TAG)
