Trial: First verdict against René Benko
The dazzling founder and ruler of a defunct real estate empire has been sentenced to two years in prison according to a non-final judgment. However, further proceedings await Benko - some of them with more serious charges.
The first trial against Signa founder René Benko was concluded yesterday in Innsbruck and ended with a conviction for insolvency fraud on one of two counts. The sums involved were comparatively small and were heard by a panel of lay judges at the Innsbruck Regional Court: It involved 300,000 euros, which passed back and forth between Benko's mother and himself, as well as an advance rent payment of 370,000 euros. The amount of damages in the first case corresponded exactly to the limit for a higher penalty. If he had been convicted on both counts, the sentence would have been up to ten years in prison. As it was, he was sentenced to 24 months in prison - five would have been the maximum.
The acquittal on the rent issue was due to the court agreeing with the defense on two issues. The first was the question of whether the property for which rent payments were made was habitable. On this point, the judges considered the allegations to be invalidated by witness testimony. In addition, the nominal rent of EUR 7,500 paid for the villa in Innsbruck-Igls was found to be in line with the market. According to media reports, the presiding judge pointed out at the sentencing that practically every cellar in Innsbruck already costs 1,000 euros.
Benko was arrested at the end of January this year. His time in custody will count towards the sentence. Benko's lawyer indicated at a media conference that his client will probably appeal against the conviction.
The big trials are still to come
The Innsbruck trial is, of course, just the beginning of an expected series of proceedings. The charges still pending against Benko include further cases of insolvency fraud in connection with valuable items, a misrepresentation of his real estate company Signa, transactions at its expense, the misappropriation of coronavirus aid and the deception of business partners through a "money carousel" or the improper use of investor funds. Benko is also facing proceedings abroad, for example in Germany for activities at the expense of a state fund, as well as in Italy, where the public prosecutor's office in Trento sees Benko as the mastermind behind a mafia-like organization. In this context, it is alleged that Benko used illegal means to obtain concessions and permits for construction projects. However, the Benko case also includes transactions that were carried out in Switzerland (IB reported). (aw)
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