Fraudulent Bankruptcy: René Benko Receives Two-Year Prison Sentence

In the case concerning an advance payment of rent and operating costs of 360,000 euros, he was acquitted, but found guilty regarding a 300,000-euro gift to his mother.

The verdict was initially not legally binding. Neither the Economic and Corruption Prosecutor's Office (WKStA) nor the defense made a statement. The WKStA had assumed that Benko intended to withhold money from his creditors in light of his impending insolvency in late autumn or winter 2023 with the rent advance for the "in need of renovation, uninhabitable" villa high above Innsbruck.

However, the jury under the chairmanship of Judge Andrea Wegscheider could not determine from the witness statements that the house was uninhabitable. The rent paid, amounting to 7,500 euros monthly, would "certainly not be excessive" considering the rental prices in Innsbruck, Wegscheider stated in her reasoning after about a three-hour hearing on the second day of the trial and a 45-minute jury deliberation.

Benko Found Guilty in Second Part of the Indictment

In the second part of the indictment, the 48-year-old Benko was found guilty. According to the WKStA, the Tyrolean had received 1.5 million euros from his mother from a loan from the Laura Private Foundation. Shortly thereafter, he transferred 300,000 euros back, followed by another payment from the mother to her son in the millions. For the judge, only one thing counted in light of the events surrounding the foundations and Benko's insolvency: "Benko received a gift from his mother and then transferred it back without legal grounds. Everything that follows is irrelevant."

Judge Wegscheider had the impression that "in light of the insolvency proceedings, an attempt was made to give the money a different label." She cited, for example, money transfers between mother and son, which were sometimes referred to as loans and then again as gifts, or for which written agreements were often only made months later.

Since the amount of damage is now 300,000 euros, a lower penalty range applies. It was only "one cent too little" to fall into the higher category, Wegscheider mentioned as an aggravating circumstance. Up to 300,000 euros, the penalty range is six months to five years, but above that, it is one to ten years. The sentence should also deter others from "doing something similar," the judge also addressed general preventive reasons. Benko's previous unblemished record was considered mitigating. The detention Benko has already suffered - he has been in pre-trial detention in Vienna since January 23, 2025 - will be credited to him.

Benko himself listened to the verdict announcement in his hometown, sitting on the edge of the large jury courtroom, outwardly composed, but a certain emotional strain could not be hidden.

Benko's Defense Lawyer: "Laughing and Crying Eye"

Benko's defender Norbert Wess commented on the verdict in a media statement at the regional court following the trial. It is "rather likely" that they will file an appeal and a nullity complaint against the verdict regarding the 300,000 Euro gift. However, they have until Monday to decide, as he needs to discuss it with his client first.

He had "a laughing and a crying eye," Wess said, referring to the part of the indictment that resulted in an acquittal. Overall, he maintains: "Legally, it is not fraudulent bankruptcy." The gift case was a legal question that he "sees differently" and where the court ignored the fact that the mother transferred back more than a million euros to her son just a few days after the payment to her. The whole matter was "interpreted too narrowly" by the jury. The lawyer also assessed the penalty, referring to the 300,000 Euro limit, as "very high."

Wess, however, considered the pre-trial detention for Benko as "no longer proportionate." The Tyrolean remains in custody only due to "risk of committing an offense." But this is not the case, because: "I do not believe that he poses a danger." What happens next regarding the pre-trial detention? It is known that he leaves no stone unturned, said the Viennese star lawyer, and another application for release would be a possibility. But he also needs to discuss this with Benko.

Benko According to Wess "a Fighter"

Meanwhile, it remained unclear whether Benko would stay in Innsbruck in light of another indictment that has been filed but contested. Wess rather assumed so. His client is certainly "a fighter who finds his way in every situation."

In view of the further trials threatening Benko and the extremely large procedural effort, Wess also suggested general considerations and advocated for changes in procedural law. The prosecution should have the opportunity to investigate for one or two years - thus receiving more time. And then it could be discussed together in talks how to proceed.

The senior prosecutor of the Economic and Corruption Prosecutor's Office (WKStA) had pleaded in the trial for a "punishment appropriate to the act and guilt" or a conviction. Defender Norbert Wess, on the other hand, pleaded for an acquittal. Benko himself also pleaded "not guilty." Beyond that, he did not want to answer any questions, but referred to a counterstatement submitted to the court with his defenders last week. There, they had "worked out everything meticulously and in detail." Even though he did not want to answer further questions, he noted that for him the statements of the WKStA were "unparalleled in cynicism."

Witnesses questioned - including the insolvency administrator in Benko's personal bankruptcy proceedings, Andreas Grabenweger, as well as two former Signa managers - were largely unable to contribute anything enlightening to the truth-finding process. However, a construction technician who was also questioned confirmed that the Hungerburg villa was apparently habitable despite various water damages and a "minimal" threatening landslide. Benko's mother, sister, and wife, who were also summoned as witnesses, exercised their right not to testify against a relative and did not appear.

The first Benko trial, likely to be followed by others, resulted in a huge media turnout in Innsbruck on Tuesday and Wednesday. Around 70 accredited journalists in the hall and numerous camera teams and photographers, also from the German-speaking abroad, were present. Benko, who has been in pre-trial detention since January, appeared drawn and significantly slimmer than before his time in prison.

(APA/Red)

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