The Next Real Estate Bankrupt

Just like in the Benko case, “treasure” hidden here too

During the raids, investigators seized luxury goods such as this Lamborghini, countless designer handbags, and valuable timepieces.(Bild: Krone KREATIV/WDR, Landeskriminalamt NRW, Polizei NRW)

This story bears a striking resemblance to the Tyrolean billionaire juggler: A German real estate bankrupt is alleged to have hidden his fortune from creditors and the state during insolvency proceedings, just like René Benko. The trail to a “treasure” also leads to Austria—now there have been a series of raids …

The flamboyant 61-year-old is one of the best-known real estate developers in our neighboring country. His nickname is “King of Kö” because, among other things, he built a futuristic shopping temple with a green exterior façade on Düsseldorf’s luxury shopping mile.

Corporate group collapses like a house of cards
But his corporate group also collapsed like a house of cards—the result: a massive bankruptcy with a mountain of debt totaling 1.6 billion euros. Now the North Rhine-Westphalia State Criminal Police Office is investigating serious allegations against the businessman, who was temporarily detained at his luxury finca on the party island of Ibiza. Meanwhile, his brother is in custody in Germany.

The allegations involve suspected insolvency fraud and embezzlement. According to Chief Prosecutor Hauke Lorenzen, the real estate tycoon is alleged to have hidden private assets worth at least tens of millions of euros from creditors. Specifically, in the form of cash transferred via accounts or hoarded luxury goods. Just as is allegedly the case with René Benko.

Designer handbags, gold, paintings, watches
Now it was time to act! Around 400 investigators and 22 prosecutors simultaneously carried out raids in six states. 49 properties were scrutinized. Austria is also considered a hub in this case, with the Tyrolean State Criminal Police Office leading the investigation. This is because the 61-year-old is alleged to have stashed at least part of his “treasure” here.

Lamborghini in the living room
A small excerpt from the security authorities’ seizure list shows just how lavishly the real estate juggler was still living despite his personal bankruptcy. Among the items seized from the suspect—who had parked a Mercedes in his living room via a private elevator—were a Lamborghini SUV, designer handbags from Hermes and Chanel worth six figures, watches, jewelry, paintings, sculptures, and gold bars.

Officials also found a wealth of evidence in the form of cell phones, computers, business records, and other documents. Analyzing the terabytes of data in this massive investigation alone will take months.