Austrian real estate tycoon arrested in fraud probe

Austrian anti-corruption officials on Thursday arrested fallen real estate tycoon Rene Benko as part of a wide-ranging fraud probe, alleging that he had attempted to conceal assets.

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.

Prosecutors have been investigating Benko on suspicion of fraud and other offences.

Benko "attempted to conceal assets" by holding them in a private foundation and tried to "evade access by authorities, trustees and creditors", the state economic crime and corruption prosecutor (WKStA) said in a statement about his arrest.

He allegedly concealed assets that included "high-priced weapons, watches and other items".

Benko, 47, was arrested at his villa in Austria's western city of Innsbruck and later brought to the capital Vienna.

Prosecutors have applied to hold him in detention.

Raids were also conducted in several places in Austria and documents, data storage devices and assets seized, the WKStA said.

In recent months, investigators had conducted extensive telephone surveillance while questioning Benko's business partners and employees.

In December 2024, Benko was questioned by Austrian authorities in Innsbruck after Italy issued an arrest warrant against him for allegedly participating in a criminal organisation.

An Innsbruck court ruled that Benko would not be extradited as the case can be probed in Austria.

Signa had shot to prominence with its vast portfolio including the famous Chrysler Building in New York and several prestigious department store chains in Europe.

Insolvency proceedings are aimed at reimbursing creditors from Europe but also from the United Arab Emirates and Thailand, who are demanding several billion euros.