First Day in Benko Trial Ends After Just Two Hours

The trial against the fallen ex-real estate tycoon and Signa founder René Benko began on Tuesday at the Innsbruck Regional Court - and ended after just under two hours. Benko, visibly slimmer and marked from pre-trial detention, pleaded not guilty in his brief questioning. Beyond that, he did not want to answer any questions, but attacked the Economic and Corruption Prosecutor's Office (WKStA) and accused it of "cynicism".

The hearing was then adjourned around noon because the short-term questioning of a requested witness - the insolvency administrator in Benko's personal bankruptcy proceedings, Andreas Grabenweger - was not possible due to scheduling reasons. The trial will continue on Wednesday, and the evidence procedure is expected to be concluded by noon. A verdict - Benko faces up to ten years in prison - is expected by early afternoon at the latest. Some of the requested witnesses, such as Benko's mother, sister, and wife, had already stated in advance that they would exercise their right to refuse to testify and will therefore not appear, as the prudent judge Andrea Wegscheider announced. In addition to the insolvency administrator, several managers from Benko's defunct Signa empire are also summoned.

Benko Pleaded "Not Guilty" at the Start of the Trial

The accused Benko referred in his brief interrogation to a counterstatement submitted last week. There, he and his defenders "worked everything out meticulously and in detail". Even though he did not want to answer further questions, the Tyrolean noted that the statements of the Economic and Corruption Prosecutor's Office were "unparalleled in cynicism" for him. The "allegations" were simply false. The house on the Hungerburg cited as part of the indictment was "provably habitable". Defense attorney Norbert Wess also requested a witness for Wednesday to support these statements.

Benko is accused of having withdrawn assets amounting to around 660,000 euros from the reach of his creditors by moving them to companies and private foundations as well as to his mother. Part of the indictment concerned an advance payment of rent and operating costs amounting to around 360,000 euros for renting a house on the Innsbruck Hungerburg to RB Immobilienverwaltungs GmbH & Co KG as the owner of the villa. According to the Economic and Corruption Prosecutor's Office (WKStA), this was "economically and factually unjustifiable". The second part concerned a gift of 300,000 euros to his mother.

Multiple Allegations of Fraudulent Bankruptcy

The senior prosecutor described in her opening statement how Benko allegedly diverted existing money and did not use it to satisfy his creditors. Benko himself had the "unusual idea" of making an advance payment of rent and operating costs amounting to 360,000 euros for four years for a "renovation-needed and uninhabitable house" on the Innsbruck Hungerburg in October and November 2023. "Where does Benko get the money for the advance payment? After all, he is short of cash," she asked and immediately provided the answer: "He takes the money as usual from one of his private foundations." The accused had a loan paid out from the Laura Private Foundation and thus made the advance payment to RB Immobilienverwaltungs GmbH & Co KG, again a subsidiary of the Laura Private Foundation. That he was allowed to live rent-free in the villa high above the city center for a year, as Benko claimed, was "pure eyewash".

The 48-year-old - who repeatedly responded to the chief prosecutor's statements with a slight shake of his head - wanted, according to the WKStA, "to secure the residence for his family in the long term. However, he knows that he will soon be insolvent," noted the public prosecutor, referring to the insolvency that was already becoming apparent at that time.

She described the second allegation as the "return of the gift." At the end of November 2023, Benko had 1.5 million euros paid out from the Ingbe Foundation through his mother - because he himself is not a beneficiary. With this, he made "various private payments," such as for furniture and interior decoration. The remaining 300,000 euros he "did not grant to his creditors" and paid the money back to his mother.

For the chief prosecutor, Benko acted as someone who, despite bankruptcy, did not want to give up "his luxurious lifestyle." Overall, he proceeded according to the motto "What doesn't fit will be made to fit." She cited "subsequent gift agreements" and quoted from chats with his sister, which would show that Benko had directed the affairs of the foundations.

Defense Attorney Wess: "Do not understand the indictment"

The Vienna-based Benko lawyer Norbert Wess was not at all in agreement with the opening statement of the prosecution. He pleaded not guilty. "I was very curious and excited about the indictment presentation. And now I have to honestly say: I do not understand the indictment legally. It is wrong both in terms of the facts and the legal assessment. And it misses the core issues," explained the star lawyer in his approximately 30-minute plea.

For example, it is "completely off the mark" when the prosecutor claims that Benko secured the rental right through the advance rent payment: "You secure the rental right through the lease agreement." Additionally, there would have been a "claim for repayment" for the paid 360,000 euros: "That was favorable for the landlord." Thus, the money would also have been available to the insolvency administrator.

The advance payment was in any case as usual or not unusual as the one-year rent exemption. "It was an agreement that made sense for both sides," said Wess. It is absurd to accuse Benko of wanting to harm his creditors. The money for the advance payment came from a loan to the Tyrolean entrepreneur. It was not money that Benko owned before: "There was value and consideration."

Furthermore, it is "objectively false" that the house on the Hungerburg was uninhabitable due to a landslide and water damage. There was even an inspection with the insolvency administrator later, where the beds were already unfolded and all the furniture was present. The water damage only occurred in the second half of 2024.

Why Benko and his family did not move in for a long time had to do with the media coverage and the subsequent "irritations." Therefore, the move was "repeatedly postponed." In addition, renovation work took place during the first few weeks.

"The 300,000 Euros Are Air"

At that time, Benko was "fighting for his life's work around the clock," the lawyer recalled. "Compared to Mr. Benko, I am lazy. What he is doing is not illegal, but his good right."

The "loan" of 1.5 million euros from the Laura Foundation by the mother to Benko was related to the mother's willingness to "support her son, to also make payments to the restructuring advisors" and to cover ongoing costs.

Regarding the "gift" incriminated by the WKStA, the defense attorney also explained that the surplus of 300,000 euros had been refunded - in December, she transferred 1.2 million euros to Benko again. This was money that Benko needed for the guarantee within the framework of the self-administered restructuring process for Signa. That did not work out, as the Signa companies went bankrupt. "The 300,000 euros are air," said the lawyer. And that is the case when viewed economically.

Enormous Media Interest at Trial

The trial started on Tuesday morning under enormous media interest. Around 70 media representatives from home and abroad were present in the large jury courtroom. Photographers and camera teams - fighting for the best picture or shot - took their positions before Benko appeared in the room. Finally, the insolvent entrepreneur and billionaire bankrupt, who has been in pre-trial detention since January, was led into the courtroom by police officers - without handcuffs - and had to endure the flashbulbs for about four minutes.

(APA/Red)

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