Italian prosecutors have issued an arrest warrant for Austrian property tycoon Rene Benko and several others connected to his Signa conglomerate, Bloomberg reports, citing Italian news agency ANSA.
The warrant is part of an ongoing investigation into alleged influence peddling within the Trentino-Süd Tirol region, bordering Austria.
While the statement announcing the investigation doesn’t name Benko directly, ANSA reports he is among those targeted. Nine individuals, including a mayor and three entrepreneurs, are currently under house arrest.
Benko’s lawyer, Norbert Wess, responded to the news, saying that his client “will continue to fully cooperate with all national and international authorities” and is “confident that any allegations against him can be resolved with the content being found to be incorrect.”
The investigation adds to the legal pressures facing Benko and his Signa group following a significant financial downturn last year. Authorities in Austria, Germany, and Liechtenstein are also conducting separate probes into Signa and its founder.
Signa’s portfolio once boasted high-profile assets, including the Chrysler Building in New York, a stake in the Selfridges department store, and a luxury hotel in Venice. The company was also involved in a major real estate project in Bolzano (Bozen), the largest city in Italy’s German-speaking region.
However, Signa’s collapse late last year was attributed to rising interest rates and a subsequent decline in asset values. This was further compounded by a recent ruling from Austria’s Supreme Court which declared a Signa Prime Selection AG restructuring plan unlawful, pushing the flagship company into bankruptcy.
