Published by Global Banking & Finance Review®
Posted on December 12, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleRene Benko, an Austrian former tycoon, plans to appeal his fraud conviction related to insolvency. He received a 15-month suspended sentence.
VIENNA, Dec 12 (Reuters) - Austrian former property tycoon Rene Benko will appeal against his second conviction for insolvency-related fraud, his lawyer Norbert Wess said on Friday.
A court in his home city of Innsbruck handed Benko a 15-month suspended prison sentence and fined him 4,320 euros ($5,100) on Wednesday for hiding two luxury watches and four pairs of cuff links from creditors by keeping them inside a safe in the basement of a relative's house.
However, the prosecution had sought a conviction based on 11 watches and 120,000 euros in cash found in that safe along with the cuff links. A spokesperson for the prosecution said on Friday they would also appeal Wednesday's sentence on the grounds that it is too lenient.
Benko had denied any wrongdoing in the case and had pleaded not guilty.
The case stems from a sweeping investigation into crimes that prosecutors suspect were committed in connection with the collapse of Benko's property group Signa from 2023 onward. It was Austria's biggest postwar bankruptcy and burnt investors including blue-chip companies in Germany and Switzerland.
Benko was found guilty of insolvency-related fraud at another trial in October and sentenced to two years in prison. He is also appealing against that conviction.
Prosecutors are appealing the fact that he was found not guilty on a second count in the October trial.
($1 = 0.8516 euros)
(Reporting by Francois MurphyEditing by Gareth Jones)
Insolvency is a financial state where an individual or organization cannot meet its debt obligations as they come due. It can lead to bankruptcy if not resolved.
Corporate governance refers to the systems, principles, and processes by which a company is directed and controlled. It encompasses the relationships among stakeholders.
A suspended prison sentence is a legal penalty where the offender is not required to serve time immediately but must comply with certain conditions to avoid serving the sentence.
A fine is a monetary penalty imposed by a court as punishment for an offense. It is often used in cases of minor crimes or violations.
Fraud is a wrongful or criminal deception intended to result in financial or personal gain. It can take many forms, including misrepresentation and concealment.
Explore more articles in the Headlines category
