According to an Austrian Broadcasting Corporation (ORF) radio report, Benko allegedly deceived a local bank about the financial standing of Signa in renewing a €25m loan.

Reuters reported that the property tycoon’s lawyer, Norbert Wess, confirmed this investigation and said that Benko was notified “some time ago”, but maintains that the accusations are “unfounded”. The newsagent cited Wess, who commented:

We are cooperating fully with the (prosecutors) in this regard and will inform them of our point of view as soon as possible.

The regulatory authority indicated that it was investigating Benko, another individual whose identity is unknown at this stage, and Signa itself. The unnamed lender’s legal representative told ORF radio that Benko himself negotiated the renewal of the loan on behalf of the company.

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In March 2024, Benko filed for sole trader insolvency after Signa’s financial collapse. Unlike a personal insolvency filing, a sole trader insolvency filing allows for reorganisation.

The Signa Holding empire crumbled along with the credit slump in 2023. Forbes reported that Benko established Signa at the age of 22. The company owns properties in Austria, Germany, Switzerland and Italy. Benko also has interests in the Kronen Zeitung and Kurier newspapers and the Chrysler Building in New York. Based on CNBC data, Austria’s financial prosecutor initiated insolvency proceedings against Benko for unpaid taxes of about €2m.

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