Austrian tycoon René Benko was charged on Tuesday with “fraudulent bankruptcy” following the restructuring in late 2023 of his Signa real estate empire, marking the largest insolvency in Austria’s history.
The anti-corruption prosecutor’s office, WKStA, announced in a statement that it had indicted Benko in this case.
Prosecutors allege that the 48-year-old magnate, whose fortune was estimated at €5.6 billion by Forbes before the bankruptcy, deliberately withheld €660,000 in assets from creditors while his financial troubles mounted.
Investigators claim Benko transferred €360,000 to an entity owning his villa just weeks before the restructuring proceedings began. He also allegedly made a donation of €300,000 to family members.
The former billionaire, who is being held in pre-trial detention in Vienna since January 2025, faces a prison sentence of one to ten years. The trial will take place in Innsbruck, his hometown, although the date has not been set.
This initial charge is just one of 12 segments in this complex case.
The prosecution is also investigating a dozen other individuals for charges including breach of trust, aggravated fraud, nepotism, and misappropriation of subsidies, with total damages estimated at €300 million.
The investigations extend to Italy and Germany as well.
Founded by Benko in 2000, Signa had enjoyed a meteoric rise, becoming co-owner of the iconic Chrysler Building in New York and several prestigious department stores across Europe.
However, the group collapsed under considerable debt in 2023, exacerbated by a sharp increase in interest rates.
Its downfall has exposed management failures and potentially fraudulent practices, which are currently under scrutiny by the prosecution.
