The fallen former real estate tycoon and Signa founder René Benko was convicted Wednesday at the Innsbruck Regional Court of fraudulent bankruptcy and sentenced by a panel of lay judges to two years in prison without suspension. In the case involving a rent and operating cost prepayment of €360,000, he was acquitted, but he was found guilty regarding a €300,000 gift to his mother.
The verdict is not yet final. The Economic and Corruption Prosecutor’s Office (WKStA) had alleged that Benko, with the rent prepayment for the “dilapidated, uninhabitable” villa high above Innsbruck, withheld money from his creditors in light of his impending bankruptcy in late autumn or winter 2023. However, the panel of lay judges chaired by Judge Andrea Wegscheider could not establish through witness testimony that the property had been uninhabitable. The rent paid—€7,500 per month—was “in any case not excessive” given Innsbruck’s rental prices, Wegscheider said in her judgment after roughly three hours of proceedings on the second day of trial and 45 minutes of deliberation.
Conviction Over Gift To Mother
Benko, 48, was convicted on the second part of the indictment. According to the WKStA, he received €1.5 million from his mother as a loan from the Laura Private Foundation. Shortly afterward, he transferred €300,000 back, and then another million-euro payment from his mother followed. For the judge, the matter was clear: “Benko received a gift from his mother and then transferred it back without any legal basis. Everything after that is irrelevant.” Judge Wegscheider said she had the impression that, “in light of the insolvency proceedings, attempts were made to re-label the money.” She cited money transfers between mother and son, alternately referred to as loans and gifts, often with written agreements only drafted months later.
Pretrial Detention Credited Toward Sentence
Because the damage amount involved €300,000, the lower sentencing range applied. “It was just one cent short of the higher category,” Wegscheider noted. Up to €300,000, the sentencing range is six months to five years in prison; above that, one to ten years. Benko’s time in pretrial detention—he has been held since January 23, 2025, in Vienna—will count toward his sentence.
Benko listened to the verdict from the edge of the large jury courtroom, appearing composed outwardly, though visibly affected.
Defense Considers Appeal
After the verdict, defense attorney Norbert Wess spoke to the media at the courthouse. It was “rather likely” they would file a nullity complaint and an appeal regarding the €300,000 gift. He said they had until Monday to decide and would first discuss the matter with his client.
Wess said he had “one laughing and one crying eye,” referring to the partial acquittal. “Legally, it is not fraudulent bankruptcy,” he maintained. He argued that the gift issue was a legal question he viewed differently and that the court had failed to consider that just days after the €300,000 transfer, the mother had again sent over €1 million to her son. The panel of judges, he said, “interpreted the matter too narrowly.” Wess also described the sentence as “very high,” especially considering the €300,000 threshold.
Pretrial Detention “No Longer Justified”
Wess said Benko’s continued pretrial detention was “no longer proportionate.” The Tyrolean remains in custody only due to the alleged “risk of committing another offense.” “I don’t believe he poses any danger,” Wess said. As for next steps, the high-profile lawyer added that another release request was possible but would have to be discussed with Benko.
It remains unclear whether Benko will stay in Innsbruck, as another indictment has been filed there but contested. Wess assumed so, saying his client was “a fighter who adapts to any situation.”
WKStA vs. Defense
The senior prosecutor from the WKStA had argued for an “appropriate punishment” and a conviction, while Wess pleaded for acquittal. Benko himself also pleaded “not guilty.” He declined to answer questions, referring instead to a detailed written statement filed the previous week, which he said covered “everything meticulously.” He again accused the WKStA of “unmatched cynicism.”
Witnesses—including the insolvency administrator in Benko’s personal bankruptcy proceedings, Andreas Grabenweger, and two former Signa managers—provided little clarity. A building engineer testified that the Hungerburg villa, despite water damage and a “minor” risk of landslide, appeared habitable. Benko’s mother, sister, and wife, all summoned as witnesses, exercised their right not to testify against a relative and did not appear.
Massive Media Presence
Benko’s first trial—likely to be followed by others—drew massive media attention on Tuesday and Wednesday in Innsbruck. Around 70 accredited journalists and numerous camera crews and photographers, including from German-speaking countries, attended. The former billionaire, who has been in custody since January, appeared gaunt and visibly thinner than before his imprisonment.
