Authorities investigating the Signa Group have identified substantial evidence of potential financial misconduct involving a suspected 'money carousel' during a planned capital increase. The Special Commission (SoKo) Signa, under the direction of the Austrian Economic and Corruption Prosecutor's Office (WKStA), has submitted a comprehensive report detailing the findings from their probe into capital transactions at Signa Holding.

The inquiry centers around a capital increase initiative for Signa Holding GmbH, which was initiated in June 2023. René Benko, founder of Signa, and six additional individuals, including former close associates and a tax advisor, are named as primary suspects. Allegations include serious fraud, breach of trust, and money laundering.

Complex Structure of the Capital Increase

According to the findings, the process of raising new capital for Signa Holding GmbH involved several entities and individuals. The initiative, orchestrated by Benko with the assistance of a tax advisor who also served on the board of the Benko Family Private Foundation (FBPS), aimed to secure 350 million euros in fresh capital. The arrangement included commitments from multiple parties: two Benko-affiliated companies, the FBPS, major shareholder Ernst Tanner, Fressnapf Luxembourg, a Benko entity acting on behalf of Swiss coffee machine manufacturer Eugster/Frismag, and the Haselsteiner family private foundation.

However, only select contributors - Eugster/Frismag, Tanner, and the FBPS - reportedly fulfilled their financial commitments, amounting to a combined total of 35.35 million euros. Investigators allege that these funds were circulated through various internal accounts before ultimately being returned to the FBPS, which then transferred the money back to Signa Holding as part of the capital increase, thereby obscuring the origin of the funds.

Alleged Use of Fictitious Contracts

The SoKo Signa report details how, within a brief period, significant sums were moved between multiple Signa entities under Benko's direction. The transactions involved the use of purportedly fictitious loan agreements between the involved companies and the FBPS, which authorities believe were designed to conceal the actual source of the capital. This maneuvering, if confirmed, could constitute a violation of corporate and financial regulations, including fraud, breach of trust, and money laundering statutes.

Ultimately, the planned capital increase did not materialize as intended. Signa Holding filed for insolvency at the end of November 2023, further intensifying scrutiny of its financial operations. Throughout the proceedings, Benko has denied any wrongdoing.

Ongoing Legal Proceedings

The investigation is ongoing, and the report compiled by SoKo Signa is expected to serve as a significant basis for potential legal action against the individuals involved. The authorities are continuing to analyze the flow of funds and the legitimacy of the loan contracts in question, as well as the roles played by each suspect.

This case highlights ongoing concerns regarding transparency and governance within major financial groups, underscoring the importance of rigorous oversight and compliance in corporate finance. The outcome of the investigation and potential court proceedings will be closely monitored by financial regulators and industry observers alike.