René Benko: Arrest warrant against ex-real estate mogul in northern Italy

Investigations in Trentino and South Tyrol –

Arrest warrant against ex-real estate mogul Benko in northern Italy

The Italian justice system has issued an arrest warrant against the Austrian René Benko, the founder of the insolvent Signa Group. Several people close to him have already been arrested.

Published: December 3, 2024, 1:54 p.m

Wanted in connection with real estate speculation in the provinces of Trentino and South Tyrol: René Benko.

Photo: Keystone

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More trouble for René Benko. The Trent public prosecutor’s office has issued an arrest warrant against the Austrian entrepreneur, as reported by the Italian news agency Ansa. The issue is Benko’s real estate transactions between 2018 and 2022. Two Signa transactions are also being investigated.

The public prosecutor’s office in Innsbruck confirmed on Tuesday that Benko was questioned by the Tyrolean State Criminal Police Office. However, he subsequently remained at large and no conditions were imposed either.

The Italian authorities have ordered “precautionary house arrest” against nine people. In total, over 100 searches took place at companies and public institutions in Italy and abroad. Members of the Carabinieri and the Guardia di Finanza were involved, according to a statement. In total, the investigations would involve 77 people, including local politicians, officials, managers and members of law enforcement agencies.

Signa Italia boss Heinz Peter Hager and the mayor of Riva del Garda, Cristina Santi, are among those under house arrest.

Benko’s lawyer, Norbert Wess, comments on the arrest warrant in the Austrian “Standard” as follows: “No European arrest warrant will be executed against Mr Benko. Mr. Benko will continue to cooperate fully with all national and international authorities as before and is confident that any allegations against him can be clarified as incorrect.”

The public prosecutor’s office in Innsbruck confirmed that a European arrest warrant does not have to be executed if it concerns an Austrian citizen against whom corresponding proceedings can also be carried out domestically. The judiciary and Benko’s lawyer did not provide any information about the allegations.

New investigations in Austria against Signa founder Benko

At the end of November it became known that Benko was facing a new trial in Austria. The Economic and Corruption Public Prosecutor’s Office (WKStA) is now also investigating Benko on suspicion of misuse of Corona funds.

It’s about funding for the Chalet N am Arlberg, which is dedicated as a hotel. The WKStA suspected that Benko’s property was primarily used for private purposes, the corruption prosecutor’s office told the APA news agency in response to a corresponding report from the ORF broadcaster. The Corona aid paid for this should therefore not have been granted.

The WKStA suspects that Chalet N “mainly” served as accommodation for Benko and his business partners and therefore should not have received any Covid funding. The funding was used in particular to finance Benko’s private lifestyle, to reimburse expenses from other Signa companies and to invite prominent guests, rather than to pay hotel employees who had become unemployed.

Overall, the WKStA is investigating Benko on suspicion of serious fraud, breach of trust and funding abuse. «A year and a half ago, we were able to prove with numerous sources that the Lecher Chalet was used less as a hotel and more as a private holiday home for Benko, his family and his guests. Benko was probably his best guest himself, and yet he received millions in Covid economic aid for Chalet N,” criticized Green MP Nina Tomaselli in a reaction available to the APA.

Benko’s Signa Holding filed for bankruptcy around a year ago. High construction costs, rising loan interest rates and home-made problems had left the trading and real estate group in trouble.