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German and Italian Authorities Raid Signa Properties in Austria in Fraud Probe

Prosecutors target documents linked to Munich real estate projects as René Benko remains in pre-trial detention over financial misconduct allegations.

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Overview

  • German and Italian investigators conducted coordinated searches at Signa properties in Austria, focusing on documents from twelve companies tied to Munich projects like Projekt Franz and Alte Akademie.
  • René Benko, the founder of the now-insolvent Signa Group, is under investigation for suspected fraud and breach of trust involving hundreds of millions of euros.
  • Probes also examine whether Benko and associates misappropriated funds from Signa and defrauded a Saudi Arabian sovereign wealth fund.
  • Italian prosecutors allege that Benko and others engaged in real estate corruption, including forming a criminal organization, bid-rigging, and fraud.
  • Signa’s collapse in 2023, driven by rising interest rates and internal issues, left creditors with claims exceeding €2.4 billion, intensifying scrutiny of its operations.