Investigation into suspected money laundering at Signa in Germany Further training? I don’t need it – so many Swiss think so

In times of cheap credit, Austrian entrepreneur René Benko built a real estate and business empire. Prosecutors are now investigating suspicions that there was criminal activity within the group of companies.

The Munich Public Prosecution Service has confirmed the investigation into suspected money laundering at the bankrupt Signa Group of Austrian entrepreneur René Benko. A spokeswoman for the investigating authority said this upon request on Wednesday, without naming one or more suspects. However, she pointed out that there is no corporate criminal law in Germany, meaning that investigations cannot be carried out against companies, but only against individuals.

“The facts will of course be extensively investigated from a legal perspective, including with regard to possible other crimes,” the investigators said in a statement. “Bild am Sonntag” reported on the process for the first time this weekend.

Until a few months ago, Benko was considered a multi-billionaire; the American magazine ‘Forbes’ estimated the 46-year-old’s fortune at 6 billion dollars (5.5 billion euros) at the beginning of 2023. However, since the end of December, a number of companies from Benko’s Signa Group have filed for bankruptcy. Benko’s complex business empire includes the Elbtower project in Hamburg, the luxury department store KaDeWe in Berlin and the also bankrupt department store chain Galeria Karstadt Kaufhof. In Switzerland, the group owns half of the luxury department store Globus.

Benko also files for personal bankruptcy

Benko itself has now also filed for bankruptcy in the Tyrolean capital Innsbruck. This includes a subsidy that Benko had announced for the bankrupt holding company of the Signa Group, which has not yet been fully paid out.

The research in Munich is not yet far advanced. However, the announcement showed that other public prosecutors in Germany are also involved in the case. At this point it apparently becomes clear where the leadership should lie. “The exact local responsibilities and therefore press sovereignty within Germany have yet to be clarified. Therefore, we must be careful about providing information at this time,” said the spokeswoman for the Munich public prosecutor’s office.

The Signa Group had grown significantly during the low interest rate phase of recent years. However, the simultaneous increase in interest rates on loans and construction costs left the group no longer able to pay off its debts. Benko himself has not publicly responded to the demise of his empire in recent months. (sda/awp/dpa)