First Day in Benko Trial Ends After Only Two Hours

The fallen former real estate tycoon and Signa founder René Benko pleaded not guilty on Tuesday at the Innsbruck Regional Court in the trial for fraudulent bankruptcy. Furthermore, he did not want to answer any questions but attacked the prosecution, accusing them of "cynicism." The hearing was then ended for Tuesday because the questioning of a requested witness was not possible. The trial will continue on Wednesday.

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

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

Benko is accused of having prevented or reduced the satisfaction of creditor claims in the course of his insolvency as a sole proprietor by setting aside assets and withdrawing them from creditors. He is said to have transferred them to companies and private foundations as well as to his mother. And all this at a time from autumn 2023, when the opening of bankruptcy was already foreseeable and he was already struggling with payment difficulties, according to the tenor of the WKStA's indictment.

Multiple Allegations of Fraudulent Bankruptcy

The prosecutor described in her opening statement how Benko allegedly "set aside" actually available 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 not at all habitable house" on the Innsbruck Hungerburg in October and November 2023. He did this through RB Immobilien GmbH, a subsidiary of the Laura Private Foundation. With this, the 48-year-old - who repeatedly responded to the prosecutor's statements with a slight shake of his head - wanted to "secure the residence for his family in the long term. But he knows that he will soon be insolvent," the public prosecutor noted, referring to the insolvency that was already emerging 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 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 is made to fit." In doing so, she cited "subsequent gift agreements" and quoted from chats with his sister, which would show that Benko had directed the affairs of the foundations. Speaking of family: Benko's sister, mother, and wife exercised their right as relatives not to have to appear as witnesses in court.

Defense Attorney Wess: "I Do Not Understand the Indictment"

The Viennese Benko lawyer Wess was not at all in agreement with the prosecution's opening statement. 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.

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

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 equivalent value."

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

The reason 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 criminal, but his good right."

The "loan" of 1.5 million euros from the Laura Foundation through 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.

Wess explained that the surplus of 300,000 euros was refunded - in December, she transferred 1.2 million euros to Benko again. That was money 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," the lawyer explained. And that is when you look at it 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 when Benko appeared visibly slimmed down under a flurry of camera flashes. The trial was scheduled for two days, with a verdict expected on Wednesday.

(APA/Red)

This article has been automatically translated, read the original article here.