Austrian property tycoon René Benko sentenced to two years in jail
Fraud trial likely to be first in a series of cases related to the collapse of real estate group Signa
René Benko has been sentenced to two years in prison after a court in Innsbruck found the Austrian real estate magnate guilty of insolvency-related fraud.
The two-day trial was the first of what is likely to be a series of court cases for the founder of property group Signa, which collapsed two years ago.
Prosecutors alleged that, as his empire neared collapse in late 2023, Benko improperly shifted money through transactions including an advance rental payment of €360,000 and a €300,000 gift to his mother.
The court ruled that the €300,000 transfer during insolvency proceedings was an attempt to hide assets from creditors. He was acquitted on a second charge related to the alleged rental advance.
Benko, who has been in pre-trial detention in Vienna since January, had faced up to 10 years in prison.
As the first criminal conviction tied to the downfall of Benko’s real estate empire, the verdict is a central moment in one of the most spectacular corporate downfalls in recent European history. The Austrian businessman’s network of property and retail holdings spanned from Vienna to Berlin and New York.
The case forms part of a wider investigation into the failure of Signa, which caught out banks, sovereign wealth funds and family offices that lent more than €15bn to entities in the group.
Prosecutors continue to investigate broader allegations of asset concealment, breach of trust and investor deception related to the group’s collapse.
New charges against Benko last month accused of him of hiding €120,000 in cash along with items including watches and cufflinks worth almost €250,000 in the home of a relative to keep them from creditors.
Prosecutors moved quickly on the first case because it has a narrow focus on alleged transfers and concealments in Benko’s personal insolvency, rather than expediting the wider probe of the cross-border collapse of Signa group.
Benko denies all wrongdoing and is expected to appeal against the ruling by the regional trial court.
The Public Prosecutor’s Office for the Prosecution of Economic Crimes and Corruption and Benko’s legal counsel could not immediately be reached for comment. His lawyer has previously dismissed the allegations as “false”.