Benko faces new trial over alleged 5 million euro fraud

Rene Benko is due back in court in Innsbruck on Wednesday and Thursday to face charges of aggravated fraud and fraudulent insolvency in a case involving an alleged 5 million euro loss to industrialist Hans Peter Haselsteiner’s family foundation, ORF reported.

Prosecutors allege that on November 6, 2023, shortly before Signa Holding became insolvent, Benko gave Haselsteiner or representatives of his family foundation a false guarantee. They say the foundation was persuaded to transfer about 3.3 million euros to Signa Holding and give up a claim to a further 1.7 million euros. The money was intended for another financially troubled Signa subsidiary.

The guarantee allegedly promised repayment of the roughly 5 million euros by June 30, 2024. Prosecutors say the payment was not made, leaving the foundation out of pocket while Signa Holding and another company benefited unlawfully.

According to media reports cited in the article, Haselsteiner’s foundation bought 5 million euros’ worth of shares in Signa Development in June 2022. The purchase price was initially to be offset against dividends due to the foundation. Haselsteiner was later asked to transfer the money immediately, with repayment promised by the end of June 2024. Benko also allegedly guaranteed he would personally cover the amount if the foundation did not receive the dividends.

Haselsteiner, an 82-year-old STRABAG founder and former business partner and investor in Benko’s Signa group, is due to testify on Wednesday morning. It will be his first testimony in a criminal trial connected to the Signa and Benko cases. Twelve other witnesses have also been called, with about half expected to testify on the first day.

The trial also concerns a charge of fraudulent insolvency. Benko is accused of concealing an 80,000 euro hunting rifle from the insolvency administrator and creditors, allegedly reducing their ability to recover debts.

Benko’s lawyer, Norbert Wess, rejected the allegations in June. He said the claim against the Haselsteiner foundation was already overdue before the guarantee was issued and that the hunting rifle had never belonged to Benko.

Benko faces up to 10 years in prison if convicted. He may choose to testify or rely on his lawyer’s submissions. In a separate Innsbruck case in September, he was sentenced to 30 months in prison for fraudulent insolvency. That conviction, relating to a 300,000 euro gift to his mother and a roughly 360,000 euro rent prepayment for a villa, is now final.

Benko was approved for electronic monitoring during a detention review in mid-October and has since been living in a rented apartment. His pretrial detention, which began in January 2025, continues under electronic monitoring while the grounds for detention remain in place.