René Benko Faces Court in Innsbruck Over Alleged Fraudulent Bankruptcy

René Benko, the founder of the once-prominent Signa Group, is set to appear before the Innsbruck Regional Court in a highly anticipated trial concerning allegations of fraudulent bankruptcy. This marks the first in a series of legal proceedings expected for the former real estate magnate, who has been in pre-trial detention since January.

The case focuses on accusations brought by the Economic and Corruption Prosecutor's Office (WKStA). Benko is charged with actions that allegedly hindered creditor claims during his insolvency as a sole proprietor. According to prosecutors, he is suspected of transferring assets shortly before the collapse of his business empire, impacting the ability of creditors to recover debts as Signa's insolvency became imminent in late 2023.

The indictment outlines two main incidents at the heart of the case, with an alleged total damage of approximately 660,000 euros. The first involves a payment of over 360,000 euros described as an advance for rent and operating costs for a property on Innsbruck's Hungerburg, believed to be Benko's personal villa. Prosecutors argue that this payment, made just prior to the Signa group's insolvency proceedings, was economically unjustifiable. The funds were reportedly transferred to RB Immobilienverwaltungs GmbH & Co KG, the company that owns the villa, primarily in October 2023, with a minor amount in November.

The second incident relates to a transfer of 300,000 euros to Benko's mother, designated as repayment for a loan. This transaction occurred at the end of November 2023, during a period when Signa's financial difficulties were already apparent, raising suspicions that the move was intended to shield assets from creditors.

The trial is scheduled as a two-day proceeding, with opening statements and Benko's questioning expected on the first day. Eight witnesses have been summoned to testify, although reports suggest some may exercise their right not to provide evidence. The verdict could be delivered as early as midday on the second day, should proceedings unfold as anticipated.

Due to the high public and media interest--fueled by Benko's profile and the scale of the Signa collapse--the court has implemented additional security measures and restricted general public access. Only ten places are available for non-media attendees, issued on a first-come, first-served basis. Around 70 media representatives, including international outlets from the United States and Italy, have been accredited to cover the proceedings.

While this is the first trial based on these specific charges, it represents only a fraction of the broader investigation into the Signa Group's downfall. The WKStA continues to pursue 14 separate lines of inquiry, examining allegations ranging from fraudulent bankruptcy and breach of trust to serious fraud and the preferential treatment of creditors. The total potential damages across all related cases are currently estimated at around 300 million euros, involving more than a dozen suspects and two corporate entities.

Benko has consistently denied any wrongdoing. His legal team has declined to comment ahead of the trial, and additional charges are being contested in separate proceedings. The outcome of this initial hearing in Innsbruck is expected to set the tone for future legal actions involving the former billionaire and his business dealings.