Austrian Prosecutors Charge Investor René Benko with Fraudulent Activities

Tue 15th Jul, 2025

The Economic and Corruption Prosecutor's Office in Vienna has filed a formal indictment against renowned former real estate mogul René Benko. The charges allege that Benko engaged in fraudulent financial practices during his bankruptcy proceedings, adversely affecting his creditors.

According to the prosecutor's statement, the indictment was submitted to the Regional Court of Innsbruck. The allegations center around a rental and operating cost advance payment totaling approximately EUR360,000 for a property, which has been deemed economically unjustifiable. Additionally, a transfer of EUR300,000 to family members is under scrutiny. The total financial damage cited in the indictment amounts to around EUR660,000. If convicted of fraudulent bankruptcy, Benko could face a prison sentence ranging from one to ten years.

This indictment is part of a broader investigation involving the collapsed Signa Group, which has seen around a dozen individuals and two organizations implicated. The total damages identified in this expansive investigation are estimated at EUR300 million.

Furthermore, authorities suspect the 48-year-old businessman of embezzlement, fraud, and bankruptcy offenses. Investigators believe that Benko misled investors and concealed assets from authorities, creditors, and bankruptcy administrators. He has been in pre-trial detention since January of this year.

Benko's rise in the business world was marked by the establishment of a complex corporate network during a period of low interest rates. His investments spanned various sectors, including the Galeria department store group, the prestigious KaDeWe department store, and the Elbtower project in Hamburg. However, the Signa Group faced significant challenges, including internal corporate issues and external pressures from rising interest rates, energy prices, and construction costs, leading to its downfall.


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