Austrian Supreme Court Upholds Rene Benko’s Fraud Conviction and Orders Retrial
Details and Implications of the Supreme Court Ruling
Background of the Case
VIENNA, July 2 (Reuters) - Austria's Supreme Court on Thursday upheld ex-billionaire Rene Benko's first of two convictions for insolvency-related fraud, for which he was sentenced to two years in prison, but ordered a retrial on a second count on which he had been found not guilty.
Details of the Fraud Conviction
The conviction related to a €300,000 ($342,400) transfer that was ostensibly a gift to Benko's mother made in late 2023 when his Signa property group was already in financial difficulty. Prosecutors said it was an attempt to keep the money from creditors.
Order for Retrial on Second Count
While the court upheld the conviction related to that payment, leaving Benko no further recourse for appeal, it overturned a ruling of not guilty at the same trial on a second count relating to €360,000 in various up-front rent and other payments for a house in Innsbruck, ordering a retrial.
Benko’s Response
Benko, 49, who did not attend the appeal hearing, denies all wrongdoing.
Signa Group and Its Collapse
At its peak, Signa controlled all or part of luxury properties including five-star hotels in Venice and Vienna and the Chrysler Building in New York, as well as high-end department-store chains such as Britain's Selfridges and Switzerland's Globus. Benko became a self-made billionaire.
Impact of Signa’s Bankruptcy
Signa's collapse, which began with insolvency filings in late 2023, is the biggest bankruptcy in Austria's history and burned investors including blue-chip companies in neighbouring Germany and Switzerland.
Additional Information
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(Reporting by Francois Murphy; editing by Barbara Lewis and Louise Heavens)
