The Munich Public Prosecution Service has now confirmed a report in the German media that Signa founder René Benko is being investigated for money laundering.
“Today I can confirm that the Munich Public Prosecutor’s Office has received reports of suspected money laundering since the end of last year, which, as usual, has led to the registration of a case,” the authority said on Wednesday. “Of course, the facts of the case will be extensively investigated from a legal perspective, also with regard to possible other crimes,” the Munich public prosecutor’s office said.
Signa’s founder was not named by the authority. Benko’s lawyer had previously told ‘Bild am Sonntag’ that he was not aware of the procedure. According to the report, Benko’s companies are said to have raised almost a billion euros from banks and investors for the purchase and development of the “Munich’s New Center” project.
Presumably most of the money flowed abroad
The Benko companies are said to have provided exaggerated information about future rental income in order to obtain higher loans on better terms. Much of the money is said to have flowed abroad.
Source: Krone
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