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Austrian real estate magnate René Benko was arrested on Thursday as Viennese prosecutors accused him of making inaccurate statements during the insolvency proceedings of his Signa properties in an attempt to embezzle assets.
Law enforcement authorities said Benko was arrested because he was considered a flight risk and prosecutors were concerned he might tamper with evidence. They also accused him of forging a document.
In an unrelated investigation, Italian police issued an arrest warrant for Benko in December over alleged irregularities with his business in the South Tyrol region.
Benko’s arrest comes more than a year after his Signa conglomerate collapsed, leaving banks, insurance companies and other investors in Austria and Germany facing billions of euros in losses.
This is a development story