Property tycoon René Benko remanded in custody in Austria

Property tycoon René Benko has been placed in pre-trial detention for two weeks following his arrest, an Austrian court ruled on Friday.

Benko, who had strong ties to several companies registered in Luxembourg, was arrested in Innsbruck on Thursday and was remanded in custody for an initial period of two weeks on Friday at a sitting of Vienna’s regional criminal court.

A spokesperson for the court said Benko had been remanded in custody for several reasons, including the “risk of obstruction of justice”.

The 47-year-old businessman is accused of having concealed his own assets in connection with the bankruptcy of his corporate empire, the Austrian economic and corruption prosecutor’s office (WkStA) said in a statement on Thursday. In addition, he is said to have withheld assets held in a foundation from the authorities, insolvency administrators and creditors.

Benko is the subject of a number of investigations in Austria, Germany and Italy, including allegations of fraud, breach of trust and bankruptcy. His lawyer has denied the allegations.

The total claims against Benko amount to around €2.4 billion, according to the insolvency administrator.

In December, Italian prosecutors issued an arrest warrant for the property tycoon and other people related to his Signa conglomerate.

Signa Holding had several subsidiaries in Luxembourg prior to its application for insolvency in November 2023. Searches were carried out in Luxembourg in July last year following a request for assistance from authorities in Austria. They were said to be related to allegations against Benko surrounding the transfer of assets, including six luxury villas on Lake Garda.

(This article was originally published by the Luxemburger Wort. Translation, editing and additional reporting by John Monaghan)