René Benko, the founder of the defunct Signa Group, has been in custody since last week, a surprise move that took place on Thursday morning at his villa near Innsbruck. The Vienna Regional Court confirmed a 14-day pre-trial detention, citing concerns that Benko might commit further crimes or destroy evidence. However, it is crucial to note that he is still considered innocent until proven guilty.
Luxurious lifestyle despite insolvency?
Officially, Benko has been living on a meager €3,700 a month, earned as a wealth manager in one of his companies. However, it is reasonable to assume that someone living like Benko has more than just a few thousand euros in their account.
Until his arrest, Benko continued to reside in his villa, enjoyed boat trips on Lake Como and went on hunting trips. It is likely that his mother, Ingeborg Benko, financed these activities, as she profits from the foundations established by René, who is officially no longer involved since a corruption conviction in 2013, with other family members receiving the dividends.
The Laura Foundation: An opaque network
The Laura Private Foundation, named after Benko’s eldest daughter, is under investigation. The foundation holds over 50 companies, including real estate, luxury villas, art pieces and even a car collection. The exact value of the foundation remains unclear, but there are indications that Benko, despite official disassociation, still pulls the strings.
Many of the companies are managed by his associates, such as Manuel Pirolt, the former finance chief of Signa Immobilien, who ensure that Benko’s wealth continues to work for him – without him officially being involved.
Since his insolvency, there have been several sales of foundation assets, including the luxury yacht “Roma”for €25 million. However, the suspicion remains that some sales were undervalued, such as a Picasso sold for €11 million, despite Benko initially wanting €20 million.
Not only in Austria, but also in Italy, investigations are ongoing. In December 2024, the Trient State Prosecutor issued a European arrest warrant against Benko, accusing him of leading a criminal organization that manipulated the real estate market in South Tyrol. His associate, Heinz Peter Hager, who is considered Benko’s representative in Italy, was even arrested.
In Germany, investigations are also underway, with the public prosecutors in Munich, Berlin and Vienna working closely together. Munich has already launched a money laundering investigation against Benko in late 2023.
Pre-trial detention: What’s next?
Benko will remain in pre-trial detention in Vienna for the time being, with the detention being regularly reviewed, the first time on February 7. The court sees a pressing suspicion of a crime and fears that Benko might destroy evidence or commit further crimes.
If the investigators can prove that assets were shifted within the foundations, it could not only be a problem for Benko, but also for other involved parties – like his mother. For the creditors, however, this is a positive development, as there is still a significant amount of money in the foundations.
René Benko’s life is like a blockbuster: a steep rise, endless luxury and then the dramatic crash. The arrest marks a turning point, but the story is far from over. The investigations are ongoing and it remains to be seen what else will come to light.