Benko faces new fraud trial over alleged five million euro loss

Insolvent Signa founder Rene Benko went on trial in Innsbruck on Wednesday, accused of serious fraud and fraudulent bankruptcy. The two-day hearing before a lay-judge panel is focused on an alleged five million euro loss to industrialist Hans Peter Haselsteiner’s family foundation, ORF reported.

Prosecutors allege that Benko gave the foundation a false guarantee on November 6, 2023, shortly before Signa Holding became insolvent. They say the foundation was persuaded to transfer about 3.3 million euros to Signa Holding and to forgo seeking repayment of a further 1.7 million euros. The money was intended for another Signa subsidiary facing financial difficulties.

The guarantee allegedly promised that the roughly five million euros would be repaid to the foundation by June 30, 2024, but no repayment was made. Prosecutors say the foundation suffered a loss while Signa Holding and another company were improperly enriched.

The case stems from the foundation’s purchase of five million euros’ worth of Signa Development shares in June 2022. The plan was to offset the purchase price against dividends due to the foundation. Prosecutors say Benko later asked Haselsteiner to transfer the money immediately, promising it would be returned as a dividend by the end of June 2024. Benko allegedly also guaranteed that he would personally cover the amount if the foundation did not receive the dividend.

Benko also faces an allegation that he concealed an 80,000 euro hunting rifle from the insolvency administrator and creditors. He could be sentenced to up to ten years in prison if convicted.

Benko arrived at court from house arrest rather than from the Innsbruck prison, where he had been held in pre-trial detention. He was granted electronic monitoring in mid-October and has since been living in a rented apartment in the city. Haselsteiner, 82, was due to testify on Wednesday; it is his first testimony in a criminal trial connected to the Signa and Benko cases.