Second Indictment Against Signa Founder René Benko for Concealing Luxury Assets

René Benko, the founder of the insolvent Signa group, is facing a second indictment for allegedly hiding luxury assets and cash reserves. According to the Austrian Public Prosecutor's Office for Economic Affairs and Corruption (WKStA), the former billionaire is suspected of concealing assets valued at nearly EUR370,000 from creditors.

The indictment, which has not yet become legally binding, accuses Benko of fraudulent bankruptcy--an offense akin to bankruptcy in German law. The latest allegations revolve around eleven high-end watches, cufflinks, and watch bands worth approximately EUR250,000. These items, along with EUR120,000 in cash, are reported to have been hidden in a safe at the home of relatives.

Benko's troubles began with a previous indictment in July, also related to accusations of fraudulent bankruptcy. In that case, he is charged with gifting EUR300,000 to family members despite the impending bankruptcy of his business. The 48-year-old businessman is scheduled to appear in court in Innsbruck starting October 14, where he faces up to ten years in prison.

His legal representative has not yet commented on the new allegations, but previously denied claims against Benko. The Austrian judiciary is investigating numerous cases connected to the troubled Signa group, which included major properties such as the Elbtower in Hamburg, the Galeria department store chain, and the upscale KaDeWe department store.

The downfall of Signa has been attributed to internal issues and rising costs that culminated in the company's collapse. The intricate corporate network, which was once considered a significant player in the real estate and retail sectors, now faces scrutiny from various legal fronts.