René Benko is taken into custody: Ex-Signa boss remains behind bars

Former billionaire René Benko remains in custody. The public prosecutor’s office in Vienna decided in the afternoon that the former real estate mogul would not be released one day after his arrest.

On Thursday the handcuffs clicked. The founder of the bankrupt Signa Group was arrested at 8:30 a.m. at his desk in the office under the roof of the Tirol department store in Innsbruck. At the same time, investigators from the Austrian BKA searched his villa in Innsbruck-Igls, a holiday home in Vorarlberg and Benko’s private apartment in Vienna.

Despite the bankruptcy, Benko has been living a luxurious life for the past few months as if nothing had happened. Now he sits in a cell under video surveillance. What’s next for him? BILD answers the most important questions.

Where is Benko now?

Benko was taken to Austria’s largest prison (currently 800 places) on Thursday around 5 p.m. The Josefstadt prison, located in the middle of Vienna, is overcrowded with 1,004 prisoners (as of January 23rd).

The infamous 19th century prison, known as the “Gray House,” is in the middle of being renovated. There are reports of cockroaches, bunk beds, communal showers.

The Austrian Ministry of Justice did not respond to BILD’s request as to how exactly Benko is being accommodated. According to a media report, he is said to have spent the first night in a solitary cell. In cramped conditions, as BILD learned: the cells are 7.5 to 9.4 square meters in size.

“It is the opposite of a modern prison,” explains Veronika Hofinger from the University of Innsbruck. “During the renovation, it is even more cramped and uncomfortable than it already was.” Everyday life is dreary: “You are locked up there for 23 hours a day, with one hour of walking in the courtyard,” says Hofinger.

Why was he arrested?

The arrest of the billionaire bankrupt came as a surprise. The Economic and Corruption Public Prosecutor’s Office (WKStA) in Vienna has been investigating Benko since April 2024 – for suspected fraud and insolvency crimes.

Now she had the entrepreneur arrested on the basis of “urgent suspicion”. Had for months Investigators tapped his phones, emails and messages evaluated. According to BILD information, the crucial information for the arrest came from Italian anti-mafia investigators.

The WKStA justified the access with the risk of blackout and the risk of new crimes. Benko is said to be the “de facto ruler and beneficial owner” of the Laura Private Foundation his – named after his eldest daughter.

On paper, the ruler of the foundation is mother Ingeborg Benko. According to BILD information, telephone recordings and emails are said to be available, according to which Benko gave instructions to managing directors of companies under the foundation’s umbrella.

The public prosecutor also accuses him of subsequently forging an invoice in order to protect “three high-priced firearms” from creditors.

Why did the bankrupt lead a luxurious life?

For months, Austrian prosecutors and former donors have been targeting the foundations that Benko allegedly used to keep money and real estate safe. The Laura Private Foundation is considered to be a hiding place for the former “Wunderwuzzi”.

The investigators’ allegation: When Benko became insolvent as a sole proprietor, he concealed the balance of power in the foundation and thus concealed assets. “A lot has happened within the foundation in the past few months,” says an insider to BILD. “Large transactions were made there, deals were concluded. Everything in secret.”

Who decides what happens next?

A judge at the Regional Court for Criminal Matters in Vienna has until Saturday to decide whether Benko will be remanded in custody or released. But a decision is expected on Friday afternoon around 2 p.m.

How long does Benko have to stay in custody?

Pre-trial detention initially lasts 14 days – but can then be extended. For this purpose, detention checks take place regularly.

Actually, a suspect should remain in custody for a maximum of six months. But: For Benko, it could be up to two years because of a possible sentence of ten years, authorities said.

What do former investors and business partners say?

None of the investors want to comment publicly on the arrest of the ex-real estate mogul. “I celebrate this day,” writes a former Signa investor to BILD. “Finally!”

Former Austrian Chancellor Alfred Gusenbauer (64, SPÖ) did not want to comment when asked by BILD. He was formerly a board member and member of the supervisory board of the real estate division of Benko’s Signa Group.

How is Benko’s family?

On Friday, servants come and go from Benko’s luxury villa in Innsbruck, and a chauffeur drives the Mercedes G-Class in which BILD recently saw the entrepreneur.

Before Benko had his arrest literally holed up in his property and reveled in luxury: confidants told BILD about his own chef who conjures up culinary delicacies for the family every day.

And the Tyrolean is said to have lacked nothing else in his four walls: According to BILD information, more than a dozen domestic workers, including nannies, looked after the family’s well-being.

For René The arrest wasn’t a big surprise to Benko’s mother-in-law Brigitte W. (67).. She says to BILD: “It was to be expected. Instead of Kitzbühel and high society, there is now prison for him. I feel sorry for my grandchildren.”