Italian prosecutors have issued an arrest warrant for Austrian property mogul René Benko as part of an investigation into alleged criminal activities tied to his real estate dealings in South Tyrol. The warrant is the latest development in an ongoing investigation into his company, Signa, which has caused billions in losses to investors across Austria and Germany.
A total of nine individuals, including the mayor of Riva del Garda, city officials, business people, and professionals, have been placed under house arrest or are being sought for suspected misconduct. These arrests are part of a broader probe into alleged fraud, corruption, and bid-rigging within the Trentino-Alto Adige region, especially in the real estate sector.
Authorities have linked the alleged malfeasance to a network of entrepreneurs who are believed to have financed electoral campaigns of public officials in exchange for favorable conditions for real estate projects. These projects allegedly involved unlawful transactions and simplified procedures that benefited the accused.
Benko’s lawyer, Norbert Wess, has denied that a European arrest warrant exists for his client, stating that Austrian law prohibits the extradition of its citizens. Benko, who faces personal insolvency after Signa’s collapse, has pledged full cooperation with investigators.
Among those under house arrest is Heinz Peter Hager, a prominent tax advisor who led Signa’s Italian operations. Another individual under house arrest is Cristina Santi, the mayor of Riva del Garda, who was reportedly shocked by the accusations and insists on her innocence.
Benko, once a major figure in Europe’s real estate scene, was involved in high-profile projects like New York’s Chrysler Building and London’s Selfridges. However, his company Signa’s massive debt led to its disintegration last year. Authorities have conducted raids at over 100 locations across Italy in connection with the case.
Currently, 77 individuals, including public officials and businesspeople, are under investigation for charges such as fraud, corruption, and criminal conspiracy. The investigation continues to unfold as prosecutors look into the extent of the alleged corruption in the real estate sector.
