Financial Crime World

Title: Liechtenstein Probes Austrian Tycoon Rene Benko and Company for Alleged Insolvency Fraud and Money Laundering

Investigation Launched against Rene Benko and His Company

In a surprising turn of events, Liechtenstein prosecutors have initiated investigations against Austrian tycoon Rene Benko and his company for suspected insolvency fraud and money laundering charges. According to a statement by prosecutor Gregor Hirn:

Preliminary investigations have been initiated against a natural person and a legal entity, as well as against unknown perpetrators.

Confirmation of the Investigation

Hirn confirmed the investigation but declined to provide further details due to ongoing inquiries. Benko’s legal representative in Austria did not respond to a request for comment. Previously, Benko’s lawyer in Germany dismissed reports of wrongdoing as unfounded.

Context: Current Investigations and Damages Claims

This investigation follows recent reports by the Swiss finance blog Inside Paradeplatz naming Benko as a subject of the ongoing investigation. Prosecutors in Austria and Germany are currently investigating units of the Signa conglomerate and its founder. Middle Eastern wealth funds have also sought arbitration, claiming approximately €1 billion ($1.1 billion) in damages from Signa and Benko.

Background: Signa’s Insolvency and Funding Efforts

Signa’s insolvency filings have made it one of the most prominent victims of the European real estate market downturn. This significant retail and property empire, boasting a €23 billion portfolio that included iconic assets like the Chrysler Building and London’s Selfridges department store, saw numerous units file for insolvency.

INGBE Stiftung, a private trust founded by Benko in Liechtenstein, was part of late funding efforts at Signa’s luxury Prime unit, as per reports from an insolvency administrator.

Significance and Implications

The implications of this investigation for Benko, a well-known figure in Austria’s business scene, could reverberate through Austria’s business community and beyond as the story develops.

Stay tuned for updates from Bloomberg.

Additional Information (Optional)

  • Date: [Insert Date]
  • Location: Liechtenstein, Austria
  • Keywords: Rene Benko, insolvency fraud, money laundering, Signa conglomerate, INGBE Stiftung, Liechtenstein prosecutors, ongoing investigation, Swiss finance blog

References (Optional)