An Austrian court on Wednesday sentenced fallen property tycoon Rene Benko to two years in prison for insolvency fraud, marking the first conviction in a wide-ranging investigation into the collapse of his real-estate empire.
Benko, once one of Austria’s richest men, founded Signa Holding in 2000, but the debt-laden group collapsed in 2023 in the largest insolvency proceedings in the country’s history.
Creditors, including in the United Arab Emirates and Thailand, are reportedly claiming billions of euros from Signa, whose portfolio once included New York’s Chrysler Building and several prestigious department store chains in Europe.
Benko, 48, was accused of concealing assets amounting to around €660,000 at the expense of creditors during the insolvency process.
READ ALSO: Fallen Austrian property tycoon Benko goes on trial over fraud charges
Conviction and sentence
At the two-day trial in Innsbruck, Benko was found guilty of one count of insolvency fraud for gifting €300,000 to his mother in late 2023.
The court sentenced him to two years in prison but acquitted him on a second count involving an alleged advance payment of about €360,000 for rent and operating expenses of a villa that prosecutors deemed “economically unjustifiable”.
The conviction can still be appealed.
The coat of arms of the Republic of Austria, a single-headed eagle, is pictured at a courtroom during the trial against Austrian property tycoon Rene Benko (not in picture), prior to another session of Benko’s trial over alleged fraud, the first charges in a wide-ranging investigation into the insolvency of his former real estate empire, on October 15, 2025 at the Regional court of Innsbruck, Austria. Benko, once one of Austria’s richest men, founded the Signa Holding in 2000, but the debt-laden group crumbled in 2023 in the largest insolvency proceedings in the country’s history. (Photo by KERSTIN JOENSSON / AFP)
Further investigations
Benko, who has been in custody since his arrest at his Innsbruck villa in January, has denied all accusations, calling the prosecution’s allegations “the height of cynicism”.
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Once a powerful figure with political connections across party lines, including to former conservative chancellor Sebastian Kurz, Benko remains under investigation along with more than a dozen others. Prosecutors have so far estimated damages at around €350 million.
BACKGROUND: Key divisions of Austria’s property giant Signa file for insolvency
In September, he was hit with another insolvency-related fraud charge, accused of hiding cash and 11 luxury watches, straps and cufflinks worth €370,000 in a relative’s safe.
In December 2024, Austrian authorities questioned Benko after Italy issued an arrest warrant accusing him of involvement in a criminal organisation. An Innsbruck court ruled that he would not be extradited as the case could be handled in Austria.