Fraudulent Bankruptcy: René Benko Receives Two Years Imprisonment

While he was acquitted in the case concerning an advance payment of rent and operating costs amounting to 360,000 euros, he was found guilty regarding a 300,000-euro gift to his mother. The verdict is not legally binding.

The Economic and Corruption Prosecutor's Office (WKStA) assumed that Benko intended to withhold money from his creditors in light of his impending insolvency with the advance rent payment for the "in need of renovation, uninhabitable" villa high above Innsbruck. However, the jury chaired by Judge Andrea Wegscheider could not determine from the witness statements that the apartment was uninhabitable. The rent paid, amounting to 7,500 euros monthly, was also "certainly not excessive" considering the rental prices in Innsbruck.

Benko Found Guilty in Second Part of the Indictment

In the second part of the indictment, Benko was found guilty. According to the WKStA, Benko 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 mattered 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 now amounts to 300,000 euros, a lower penalty range applies. It was only "one cent too little" to fall into the higher category, she mentioned as an aggravating circumstance. Up to 300,000 euros, the penalty range is six months to six years, but above that, it is one to ten years. 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, sitting composed on the edge of the large jury courtroom, but a certain emotional strain could not be hidden.

Benko's Defense Lawyer Commented

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 has "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 involved a legal question that he "sees differently" and in which 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."

Benko According to Wess "a Fighter"

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." However, 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.

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."

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 everything out meticulously and in detail." Even though he did not want to answer further questions, he noted that, in his view, the statements of the WKStA "cannot be surpassed in cynicism."

(APA/Red)

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