Second Trial Against Benko: Cash, Jewelry, and Watches Allegedly Hidden

In addition to the 48-year-old, his wife Nathalie also has to answer before the jury court. Both are accused of having set aside 370,000 euros in assets during Benko's insolvency as a sole trader. Cash, jewelry, and high-priced watches are said to have been hidden in a safe at relatives' homes. The public prosecutor's office saw the offense of fraudulent bankruptcy as given, the defense lawyers denied this. The two defendants waived making statements. The jury withdrew for deliberation at around 3:45 p.m.

He declared "not guilty," Benko stated in his interrogation after the pleas of the Economic and Corruption Prosecutor's Office (WKStA), briefly but emphatically. He referred to the written counterstatement submitted by his lawyers, which he had meticulously prepared with them: "I raise it here as my statement." He said he was seeing his wife for the first time today since his imprisonment in January of this year, the 48-year-old said emotionally affected. Due to media pressure, he did not want to make any further statements.

Nathalie Benko also did not want to comment further in view of the "enormous pressure" at the trial and, like her husband, referred to a written statement. The 42-year-old also pleaded "not guilty."

WKStA: "Close Temporal Connection"

According to the Economic and Corruption Prosecutor's Office (WKStA), there was a "close temporal connection" between the installation of the safe in the house of Nathalie Benko's uncle and aunt in the Tyrolean Oberland on March 11 and Benko's insolvency application just five days earlier. During the investigations by the insolvency administrator, it was noticed that watches, for which there were insurance documents, did not appear in René Benko's asset register. A former security employee of the family finally provided the hint of a possible safe outside the villa - which the senior prosecutor described in his opening statement as "the most secure place in Austria" due to a safe room. During a house search, investigators "actually found" the safe in the basement, hidden behind boxes.

The public prosecutor described René Benko's behavior after his arrest as "astonishing" when he was questioned about the assets in question. At first, he did not comment, but several weeks later he submitted a written statement. According to this, he had given four watches to his six- and eleven-year-old sons for Christmas in 2021 and had "occasionally borrowed" them afterwards. However, pictures of the Christmas celebration showed "age-appropriate" gifts for the boys, and Benko was wearing one of the watches himself on December 25. Other watches were intended for auction at a charity event. Watches and cufflinks were said to have been worth 250,000 euros. The 120,000 euros in the safe, Nathalie Benko - who described herself as a "full-time mom" and, like her husband, shook her head at the prosecutor's statements - had saved as household money. Whether this is "credible" must now be decided by the court.

Wess: "Science-Fiction, Hocus Pocus"

Benko's defense lawyer Norbert Wess, in his opening statement, harshly criticized the Economic and Corruption Prosecutor's Office and requested an acquittal. The allegations were false, and there were no objectively incriminating or concrete pieces of evidence in the indictment. "From page ten, it becomes entirely science fiction." And repeatedly, Wess emotionally stated: "This is hocus pocus." "This is a prime example of how not to and should not prosecute," the defense lawyer also recorded. The investigative authority should have "openly weighed all pros and cons," emphasized the Vienna lawyer. None of this was considered. Furthermore, the indictment completely ignored the year 2021 - when the gifts were supposed to have been given - a year in which Benko was "at the peak" professionally and economically. At that time, all family members were given gifts, and they were indeed "usual gifts." Moreover, the uncle and aunt testified under oath that their niece only wanted to "separate" her valuables and store them with them due to an impending move. Her husband, however, was not involved in any way, they testified. Thus, and due to many other facts, it was clearly evident that there was never a so-called "joint plan of action."

"In Court, It Should Be About Knowledge"

Attributing all the valuables and cash in the safe to René Benko is simply objectively wrong. Partly, the indictment also consists of inaccuracies. The indictment is largely about belief, but not about knowledge: "In court, it should be about knowledge."

Just as Benko had given a "life ring" to mother and daughter, he had also given something to his daughters - as a "tangible memory" of their father, as stated in the written counterstatement, which Wess repeatedly referred to and which was created with Benko's active assistance. Of 16 high-priced watches, several of which had indeed gone to his insolvency administrator, he had previously selected some "in an emotional moment" in 2021 and given them to his sons. In some cases, he had also "strapped on" a watch himself afterwards. Such gifts to a six-year-old or an eleven-year-old are "quite normal in a family context." One gives gifts with a long-term perspective. It does not mean that the watches are worn immediately or have to be worn.

Regarding the cash, it was by no means an "emergency cash reserve" or a "nest egg." Rather, it was household money or savings, i.e., funds from Nathalie Benko, which had largely been set aside years ago.

The Signa founder had vehemently denied the allegations before the trial. His wife had not yet defended herself. Both defendants face one to ten years in prison if convicted.

Mrs. Benko's lawyer, Michael Hohenauer, described the WKStA indictment as "inadequate and flawed." The "foundation" of the indictment - a conversation between the Benko couple in which they allegedly devised the "plan" - "never took place": "It is completely fabricated." Furthermore, Nathalie Benko had acquired the safe to secure "her most valuable items," namely seven diamond rings worth 5.5 million euros, during a move. The rings were not part of the indictment but were kept under lock and key by the WKStA. The Tyrolean lawyer vehemently criticized that these rings and other confiscated personal items, such as a hard drive with family photos, had not yet been returned to her, even though they "undeniably" belong to Nathalie Benko.

Mrs. Benko saw her husband for the first time today, and it was also "forbidden" for them to talk on the phone, said Hohenauer: "Every serious criminal talks to his wife. The two have three children together, so there is much to discuss."

Uncle Allegedly Knew Nothing About Safe's Contents

Nathalie Benko's uncle, at whose place she had the safe installed, was the first to be called to the witness stand. His niece had merely asked if she could store valuables. Since there was no safe in the house, a safe was acquired, which Nathalie Benko herself approved. After installation, the "matter was settled." The Tyrolean knew nothing about the contents, and the matter was never discussed with René Benko.

Insolvency Administrator Found "Zero" Cash Suspicious

The next witness was the insolvency administrator in Benko's personal bankruptcy proceedings as an entrepreneur, Andreas Grabenweger. He described how he had been at the villa in Innsbruck-Igls shortly after Benko's insolvency was opened. He had asked the Signa founder to show him what belonged to him. Benko then led him to a safe containing two watches, with holders for more watches behind them. The Tyrolean was also wearing a watch on his wrist, and there were cufflinks and jewelry present. This was all he could show in terms of valuables, Benko had stated. As for available cash, the entrepreneur had indicated "zero," which he had never experienced in his entire career, Grabenweger explained in court.

Since the media had always talked about Benko's "great watch collection," his previous statements had made the insolvency administrator "suspicious." The result was a statement of facts on his part after a house search. Specifically, he had also been looking for a luxury watch of the brand "Patek Philippe," which eventually turned up during a house search. In any case, Benko then "proactively" made it possible to supplement the asset list. Eight watches were named by the former billionaire.

When Grabenweger, according to his own statements, wanted to see a list of gifts from the past ten years to close relatives, Benko's side stated that this could only be presented as a total sum - due to a lack of documents and records. For example, in the years 2019 to 2021, 5.5 million euros in gifts had been accumulated for Benko's wife Nathalie. As for gifts to the children, it was also described as "occasion-related," Grabenweger recounted to Judge Heide Maria Paul. For him, the matter was then settled because: "I knew how old the children are." He had assumed child-appropriate gifts, and in the case of high-priced items like luxury watches, a list would have been necessary.

Ex-Signa-Holding CEO Marcus Mühlberger could contribute little to the search for truth. He was questioned about the insurance documents, as he had been responsible for "all kinds of insurance" in the Laura Private Foundation. Jewelry and valuables of the Benko family were also insured here.

Second Trial Against Benko: Large Media Turnout

As in the first bankruptcy trial against the fallen former multi-billionaire, the media turnout was extremely large both before and in the large jury courtroom of the Innsbruck Regional Court this time as well. Around 50 journalists - including those from abroad - gathered in the hall, along with numerous photographers and camera teams. When Benko, who is in pre-trial detention, was led into the courtroom by security officers - again without handcuffs - a minute-long flash of cameras descended upon him. The 48-year-old is visibly marked. His wife Nathalie only entered the courtroom after the photographers and camera teams had to leave the jury courtroom.

Verdict Possibly Today

The jury trial, chaired by Judge Heide Maria Paul, is scheduled today from 9:00 AM to 6:00 PM. A second day of hearings is set for December 16. However, a verdict could be reached today. In a first bankruptcy trial in his hometown in October, Benko was sentenced to two years in prison - not legally binding. He was found guilty regarding a 300,000-euro gift to his mother. In a second charge concerning an advance payment of rent and operating costs amounting to 360,000 euros for an Innsbruck property, the former entrepreneur was acquitted. Both Benko's lawyer Wess and the WKStA have filed appeals against the verdict.

Controversial Closing Arguments

In the afternoon, there was a more than hour-long reading of protocols by the chairwoman. Subsequently, the prosecution and defense delivered their closing arguments, which followed the previous lines of argument. The senior prosecutor argued for a punishment appropriate to the guilt and offense and spoke of an "extraordinarily good, objective evidence situation" based on chat logs, photographs, etc., which made the accused highly suspect. Benko allegedly wore the supposedly gifted watches and cufflinks until 2023, and the generous Christmas gifts in 2021 did not occur as claimed, she reiterated accusations from her colleague's opening statement. She also referred to Benko's - not legally binding - conviction for fraudulent bankruptcy from October.

Benko's lawyer Wess and colleague Hohenauer again pleaded for acquittal. Wess sharply attacked the senior prosecutor and identified "injustice." He argued that she was reversing the burden of proof - in a constitutional state, a defendant does not have to prove their innocence, but the other side must prove their guilt: "One does not have to prove oneself innocent." Wess also read two affidavits from Benko's mother and sister, in which they confirmed that not only they themselves but also the entrepreneur's children had received expensive watches as gifts. Hohenauer criticized the "lack of objectivity" of the Economic and Corruption Prosecutor's Office: "Such a case should never have been indicted. You have zero evidence."

(APA/Red)

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