INNSBRUCK: Austrian former billionaire Rene Benko goes on trial on Tuesday in the first case tackling the collapse of his property group Signa.
This trial is the first of two cases prosecutors have filed against Benko so far, accusing him of insolvency-related fraud.
The charge he faces this week alone carries a sentence of up to 10 years in prison.
It will be Benko’s first public appearance since the 48-year-old was arrested in January and has remained in custody.
This week’s trial, scheduled for Tuesday and Wednesday, centres on whether roughly 660,000 euros in payments and transfers were attempts by Benko to keep that money out of creditors’ hands.
Just over half that amount, roughly 360,000 euros, was rent and related up-front expense payments for a house that were economically and fundamentally unjustifiable according to prosecutors.
The remaining 300,000 euros were ostensibly a gift to relatives, the Central Prosecutors’ Office for Economic Crimes and Corruption said.
Signa became the biggest casualty of Europe’s property downturn when some of its main units filed for insolvency in 2023.
Prosecutors are conducting a sprawling investigation into possible crimes committed and estimate the related damage caused at around 300 million euros.
Signa’s collapse is Austria’s biggest bankruptcy and a spectacular fall from grace for Benko, who built Signa from the ground up.
Benko has previously denied allegations made against him, and his lawyer has not responded to requests for comment.
Signa’s creditors, which include blue-chip companies like Deutsche Bank, Allianz, Julius Baer and Raiffeisen Bank International, have filed billions of euros in claims against the group since its collapse. – Reuters
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