Vienna, January 23 (Reuters) - Rene Benko, the founder of the collapsed Austrian real estate conglomerate Signa, was arrested on Thursday on suspicion of falsifying a receipt and attempting to hide assets from insolvency administrators and creditors, according to prosecutors.
The Central Prosecutors' Office for Economic Crimes and Corruption (WKStA) noted the potential for Benko to commit further offenses. They stated that in the context of his insolvency, Benko is believed to have covertly controlled and benefitted from a trust named after his daughter.
He thereby concealed assets, keeping them within the trust beyond the reach of authorities, administrators, and creditors, the WKStA explained.
Following his arrest, Benko's lawyer Norbert Wess mentioned that a court would have to decide within 48 hours whether to keep his client in custody. Wess did not immediately respond to requests for comment on the allegations.
Austrian media reported that Benko, aged 47, was detained at his residence in Innsbruck early on Thursday.
Benko, who amassed his wealth by establishing Signa and taking advantage of low interest rates, faced challenges as interest rates rose in 2022, leading to insolvency declarations within Signa and creditor claims to recover assets.
The accused is suspected of concealing assets such as valuable weapons, watches, and other items, or selling them at inadequate prices, thereby obstructing or decreasing creditor repayment, prosecutors stated.
The allegations further claim that Benko devised a receipt afterward and distorted evidence to retain ownership of three exceptionally valuable firearms, preventing authorities and creditors from accessing them, as stated by the WKStA.
The WKStA is conducting multiple investigations into Signa and Benko. Last April it initiated a probe into Benko on suspicion of fraudulent activities.
Additionally, an Italian judge, along with eight others, is looking into alleged connections to corrupt politicians in northern Italy. Austrian authorities indicated they currently do not intend to arrest Benko following this development.
During a search at Benko's residence in Tyrol in June, police sought documents related to ongoing investigations.