The billion-dollar Signa bankruptcy is increasingly taking on a criminal dimension: the economic and corruption public prosecutor’s office (WKStA) has initiated criminal investigations. Specifically, the managing director of a Signa project company is being investigated for serious fraud in connection with a capital raising measure, as the prosecution announced on Friday.
Investments from investors are said not to have flowed into promised projects. The presumed amount of damage is being determined.
According to the WKStA, a team of several senior public prosecutors and economic experts was formed to investigate together with a special commission (Soko) of the Federal Criminal Police Office.
Further information regarding the suspects and which project company they are was not provided due to the ongoing investigation.
In addition, two other proceedings are ongoing, as the WKStA announced. Those responsible for a Signa company have therefore filed a voluntary report under the Financial Crimes Act. This is regarding capital gains tax for a dividend distribution that was not paid.
The second case has been known for a long time and concerns Benko himself: According to the former Secretary General of Finance and confidant of ex-Chancellor Sebastian Kurz (VP), Thomas Schmid, an investigation is being carried out on allegations of bribery and abuse of official power. According to Schmid, company founder Rene Benko is said to have offered him a management position in the Signa Group so that taxes might be set “as low as possible”.
As reported, the Signa real estate group, which is largely insolvent, is confronted with numerous advertisements. These are continually checked by the WKStA to determine whether there is an initial criminal suspicion. Proceedings are also underway in Germany – last week the Munich public prosecutor’s office confirmed investigations into suspected money laundering at Signa companies.
The Signa series of bankruptcies, with claims totaling double-digit billions, is by far the largest insolvency in Austrian economic history.
