René Benko, founder of the Austrian property group Signa, was arrested in Innsbruck following an investigation into alleged corruption in Italy. He faces fraud charges after Signa's collapse, though he denies the allegations.

According to Reuters, René Benko, the founder of the troubled Austrian property group Signa, was arrested at his villa in Innsbruck, as reported by the newspaper Kronen Zeitung on Thursday.

When asked for further details, local police referred inquiries regarding Benko's arrest to Austria’s anti-corruption prosecutors' office, though no immediate comment was available. Benko's lawyer, Norbert Wess, confirmed the arrest to the newspaper Der Standard.

The arrest stems from a judge in Italy’s decision to issue a warrant for Benko and eight other individuals, as part of an investigation into alleged political corruption in northern Italy. Sources with direct knowledge of the case had informed Reuters about the warrant last month. Initially, Austrian authorities had stated they did not plan to arrest him.

Benko, 47, built Signa into a property empire, amassing billions by making aggressive investments, particularly in an era characterized by extremely low interest rates, which began to change in 2022. As interest rates rose, several key segments of Signa declared insolvency.

In June, authorities searched Benko's villa in Tyrol in connection with ongoing investigations, looking for documents relevant to their inquiries.

Prosecutors have been investigating Benko on suspicion of fraud in relation to the collapse of Signa, though he has denied the accusations, calling them baseless.

Signa's downfall has made it the most significant victim of Europe’s property sector crisis, with creditors now scrambling to recover what they can.