The collapse of René Benko’s Signa empire has become a major issue for Austrian justice. A recent parliamentary inquiry reveals that the fallout from this unprecedented bankruptcy will continue to engage the justice system for some time.
Investigations and complaints
Vienna/Innsbruck – The downfall of René Benko’s Signa empire in late November last year has quieted significantly. However, the largest bankruptcy in Austrian history remains a major focus for the judiciary. A special task force, Soko Signa, has been established at the Federal Criminal Office (BK) to handle the case.
Keeping track of the numerous complaints and investigations related to Signa and Benko is challenging. The parliamentary inquiry titled “Disaster Signa: Investigations into insolvency delay, creditor impairment, and other crimes,” posed by the Neos party in January, sheds some light on the situation. On March 19, Justice Minister Alma Zadic (Greens) responded in writing, revealing that there have been around 37 complaints filed with public prosecutors in Innsbruck, Vienna, St. Pölten, and the Economic and Corruption Prosecutor’s Office (WKStA). Investigations were initiated in two cases.
Current status of the investigations
In a subsequent inquiry on June 24, the Neos requested an update on the status of the investigations and allegations against members of the Signa group or Benko himself. Minister Zadic responded on August 6, based on information from the Chief Public Prosecutors’ Offices in Vienna and Innsbruck.
As of July 1, 2024, a total of 50 complaints related to Signa have been received by the public prosecutors. According to the response, seven complaints were filed by (potential) victims, while 43 were submitted by private individuals or the criminal police. No complaints have been reported from insolvency judges or administrators. Investigations have been launched in five of the cases.
Types of allegations and team expansion
The complaints involve accusations of fraudulent insolvency (similar to bankruptcy), fraud, gross negligence in impairing creditor interests, breach of trust, misuse of subsidies, money laundering, and coercion. Additional allegations include pyramid schemes, forming a criminal organization, and withholding employee social security contributions.
The WKStA has not initiated investigations based on complaints but on factual information. As of July 1, investigations into eight factual issues have been launched.
Since March 6, the Signa case has been handled by a team of initially three prosecutors, which was expanded on April 30 to include an additional prosecutor and a team leader. The team also includes a legal intern and a trainee lawyer. Personnel from other departments are not currently involved.
