Austrian Property Billionaire Signa Arrested For Hiding Assets From Bankruptcy

JAKARTA - The founder of the bankrupt Austrian property group, Signa, Rene Benko, was arrested on suspicion of falsifying receipts and trying to hide assets from bankruptcy administrators and creditors.

The Office of the Central Prosecutor's Office for Economic and Corruption Crimes (WKStA) said Benko was suspected of committing a crime related to Signa's bankruptcy.

Benko is suspected of secretly controlling and becoming a guardian named after his daughter

"He hides assets and stores assets in trusts beyond the reach of authorities, administrators, and creditors," the WKStA said.

Shortly after his arrest, Benko's lawyer, Norbert Wess, said the court needed to decide within 48 hours whether his client should remain in custody.

Benko previously denied the accusations leveled against him.

Austrian media said Benko (47) was arrested at his villa at the Innsbruck on Thursday morning.

Benko became a billionaire by building Signa from scratch, utilizing units on a large scale in the era of the super low interest rate which began ending in 2022.

As interest rates continued to rise, key parts of Signa said they were bankrupt and the company became the biggest victim of property slump in Europe, with creditors trying to save what they could.

"The defendant allegedly hid assets such as weapons, watches, and other valuables or sold them without adequate compensation to hinder or reduce creditors' satisfaction," said the prosecutor.

Benko is suspected of making receipts after the incident and falsifying evidence to store three very valuable weapons beyond the reach of the authorities and creditors, the WKStA said.

Police searched Benko's villa in Tyrolean in June, looking for documents related to ongoing investigations.