Austrian Prosecutors Charge Investor René Benko in Fraud Case

The Public Prosecutor's Office in Vienna has formally charged renowned investor René Benko, marking a significant development in a high-profile legal case. Authorities allege that Benko misappropriated assets during his insolvency as a sole proprietor, acting to the detriment of his creditors. This indictment has been submitted to the District Court of Innsbruck.

According to the prosecution, Benko transferred EUR300,000 to family members while facing mounting financial difficulties and an impending bankruptcy declaration. The charges fall under the Austrian legal definition of fraudulent bankruptcy, with the total damage assessed in this case reaching EUR660,000. If convicted, Benko could face a prison sentence ranging from one to ten years.

This case is part of a broader investigation involving the failed Signa Group, where approximately a dozen individuals and two corporations are being scrutinized. The overall financial impact of the alleged misconduct has been calculated at EUR300 million, highlighting the severity of the situation.

Furthermore, authorities suspect the 48-year-old of committing embezzlement, fraud, and bankruptcy offenses. Investigators claim that he deceived investors and concealed assets from regulatory bodies, creditors, and bankruptcy administrators. Benko has been in pre-trial detention since January.

In the past, Benko established a complex corporate structure during a period of low interest rates, making significant investments in various high-profile entities, including the Galeria department store group, the prestigious KaDeWe department store, and the Hamburg Elbtower project. However, the Signa Group faced a series of challenges, including rising interest rates, escalating energy costs, and increasing construction expenses, which ultimately contributed to its downfall.