Court Hearing for Ex-Billionaire Benko Set for October 14th and 15th - Hearing of ex-billionaire Benko scheduled for 14th and 15th of October
Innsbruck, Austria - Austrian investor and former billionaire René Benko is set to stand trial on October 14-15, 2025, at the Innsbruck Regional Court, accused of fraudulent insolvency. The trial marks the first criminal proceedings against Benko, who is the founder of the Signa real estate group.
The trial is not limited to the charges of fraudulent insolvency. The indictment alleges that Benko, during his insolvency as a sole entrepreneur, made unjustifiable advance payments totaling around 360,000 euros for rent and operating costs of a villa in Innsbruck, despite growing financial difficulties, and gave a 300,000 euro gift to relatives around the time of insolvency. These actions are considered as hiding assets from creditors.
If convicted, Benko faces a prison sentence ranging from one to ten years. He has denied all allegations. The trial, held before a jury court at the Landesgericht Innsbruck, is part of a broader investigation by the Economic and Corruption Prosecutor's Office (WKStA), which currently pursues 13 different strands of inquiry related to Signa's bankruptcy. Further charges against Benko may still arise as investigations continue.
Benko has been in pre-trial detention since January 2025, and his applications for release have so far been denied by the court. The villa involved in the rents is reported to have been uninhabitable at the time due to water damage from a landslide, underscoring the prosecution's claim that these payments were economically unjustified.
The collapse of the Signa Group, which operated in Germany and invested in various real estate and companies including the Elbtower in Hamburg, the Galeria department store group, and the luxury department store KaDeWe, was due to internal corporate problems, rising interest rates, energy prices, and construction costs. The damage caused to Benko's creditors is estimated to be 660,000 euros.
The allegations against Benko extend beyond the charges he is currently facing. Investigations are ongoing in around a dozen other cases, including allegations of fraud and embezzlement. The trial for the 48-year-old Austrian investor will take place at Innsbruck Regional Court over two days. If found guilty, the trial could have significant legal consequences for Benko.
The Community policy and Business investigations related to René Benko's case may expand, as the Economic and Corruption Prosecutor's Office is currently pursuing 13 different strands of inquiry concerning Signa's bankruptcy, and further charges against Benko might still arise. Despite the financial difficulties, it is alleged that Benko made advance payments totaling around 360,000 euros for rent and operating costs of a villa in Innsbruck, and gave a 300,000 euro gift to relatives around the time of insolvency, actions that could potentially violate employment policy and finance regulations.
