The fallen real estate tycoon and Signa founder René Benko will face trial starting Tuesday in a first two-day hearing at the Innsbruck Regional Court on charges of fraudulent bankruptcy. The 48-year-old Tyrolean is accused of having withdrawn assets worth around €660,000 from the reach of his creditors by transferring them to companies, private foundations, and to his mother.
Part of the indictment concerns an advance payment of approximately €360,000 in rent and operating costs for leasing a house on Innsbruck’s Hungerburg to RB Immobilienverwaltungs GmbH & Co KG, the villa’s owner. According to the Economic and Corruption Prosecutor’s Office (WKStA), this was “economically and factually unjustifiable.” The second part of the case involves a €300,000 gift to his mother.
If convicted, Benko faces one to ten years in prison. The former multi-billionaire, who is currently in pretrial detention, is expected to face a media frenzy in his hometown. More than 70 journalists have registered to attend the trial, which will take place in the large jury courtroom. This marks the first, relatively small trial in what is expected to be a series of proceedings against the entrepreneur. Benko has so far denied all criminal allegations related to the Signa insolvency.
