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Austria’s Supreme Court has upheld former billionaire Rene Benko’s conviction in one of the first criminal cases linked to the collapse of property group Signa, while ordering a retrial on a separate insolvency fraud charge. The ruling confirms one conviction involving a EUR 300,000 transfer to Benko’s mother but reopens proceedings over EUR 360,000 in rent-related payments. The lower court will now decide a fresh overall sentence after the retrial. The case is among several investigations arising from Signa’s collapse, Austria’s biggest corporate bankruptcy.
Austria’s Supreme Court has upheld former billionaire Rene Benko’s conviction in one of the first criminal cases arising from the collapse of property group Signa, while ordering a retrial on a second insolvency fraud charge. The ruling means Benko’s conviction on one count is now final, although the lower court will have to issue a fresh overall sentence after the second charge is heard again.
The case marks the first criminal proceedings linked to the failure of Signa, the real estate company founded by Benko. Before its collapse, the group had built one of Europe’s largest property portfolios, owning and investing in high-profile assets including New York’s Chrysler Building and the UK’s Selfridges department stores. Signa entered insolvency in late 2023 in what became Austria’s largest corporate bankruptcy, triggering multiple investigations into the group’s financial dealings.
Prosecutors estimate that suspected offences connected to Signa’s collapse caused financial losses of around EUR 1.5 billion, equivalent to about USD 1.7 billion. Authorities have been investigating several transactions carried out before the group entered insolvency.
The conviction upheld by the Supreme Court relates to a EUR 300,000 transfer made to Benko’s mother at a time when Signa was already facing financial distress. Prosecutors argued that the transfer was intended to place assets beyond the reach of creditors. Benko has denied the allegation throughout the proceedings.
However, the court ordered a retrial on a separate charge involving EUR 360,000 in advance rent and other payments for a house in Innsbruck. Prosecutors claim those payments may also have been made to shield assets from creditors, while Benko maintains that he has committed no wrongdoing.
Following the ruling, Benko’s lawyer, Thomas Pillichshammer, said the defence remained confident of securing an acquittal during the retrial. He stated that new legal arguments would be presented but did not disclose further details. Benko, 49, was not present during the appeal hearing.
The lower court had originally sentenced Benko to two years in prison after finding him guilty on one count and acquitting him on the second. Since the acquittal has now been set aside, the court conducting the retrial will decide a new combined sentence based on the final outcome of both charges.
The ruling represents another significant step in the legal proceedings surrounding Signa’s collapse, with several civil and criminal investigations continuing in Austria and other jurisdictions over the group’s financial operations and debt restructuring.
Source Reuters
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