Trial to Begin in René Benko Case Involving Non-Transparent Cash Flows and €30 Billion in Claims
Just under two years after the spectacular collapse of the Signa empire founded by René Benko, the 48-year-old investor is facing a turning point: the first criminal trial begins next Tuesday at the Innsbruck Regional Court. While the judiciary accuses him of concealing assets from creditors, the investigating authorities still consider the “big picture” of cash flows in the opaque Signa structure to be open.
The public prosecutor's office accuses René Benko of having prevented or reduced the satisfaction of creditors' claims in the context of his insolvency as a sole trader by allegedly setting aside assets. / Picture: © Wikipedia / Priwo
The trial, scheduled for Tuesday and Wednesday, October 14 and 15, revolves around allegations of fraudulent bankruptcy. The Public Prosecutor's Office for Economic Affairs and Corruption (WKStA) estimates the damage in this case at €660,000. Among other things, it concerns alleged advance payments for a rented villa and a transfer of €300,000 back shortly before insolvency. Benko, who has been in custody since January 2025, denies the allegations.
However, the charges are only the tip of the iceberg, as Newsflix reports. The Signa founder is already facing a second charge of fraudulent bankruptcy. This case involves assets worth €370,000, including €120,000 in cash, seven rings, four pairs of cufflinks, and eleven luxury watches (including a Patek Philippe “Nautilus” worth approximately €100,000). These are said to have been hidden in a specially ordered secret safe in the house of relatives in Pfunds. The public prosecutor's office lists Benko's wife, Nathalie Benko, as a co-defendant (contributory complicity). She is said to have ordered the safe and stored the assets there. The “treasure” was discovered thanks to a tip from one of the investor's former bodyguards. It is still unclear whether this second charge will also be heard in the trial starting on October 14, as both Benkos have lodged an appeal.
Nathalie Benko, the investor's wife, also denies the allegations. She stated that the watches had already been given to her minor sons as gifts – an argument that, according to experts, is refuted by photos of Benko still wearing the watches afterwards. During the house search, a box labeled “Nathalie Jagd” was also found in an attic, containing another €60,000 in cash and chat logs about disputes. The public prosecutor's office suspects that the money was Nathalie Benko's “nest egg” in case of divorce and corresponding “evidence” against her husband. However, this money is not part of the charge of fraudulent bankruptcy.
Peschorn calls for clarification of the “money carousel”
The head of the Financial Procurator's Office, Wolfgang Peschorn, emphasized the extreme lack of transparency of the Signa conglomerate, which comprises over 1,130 companies. Peschorn called for the reconstruction of asset transfers and cash flows in order to get the “big picture.” A significant portion of the funds from previously unknown investors in the real estate companies Signa Prime and Signa Development flowed through Luxembourg-based companies.
According to Peschorn, it cannot currently be ruled out that this money was either fed back into the Signa conglomerate via several stages or originated from money laundering.
Private foundations in the spotlight
Particular attention is being paid to Benko's private foundations. Large sums of money may have been parked there without the judiciary and creditors having access to them so far. Peschorn described the foundations, where Benko's influence suggests that the assets are held in trust, as “a door that needs to be opened.”
The fact that the foundations served as “financing vehicles” is also underpinned by the bankruptcy proceedings against the Benko family private foundation. As has become known, considerable amounts flowed from the foundation to Signa companies or to René Benko personally before the insolvency proceedings were opened, and are now being claimed back by the respective insolvency administrators.
Claims exceeding €30 billion – little hope for creditors
At this week's examination hearing for the Benko family private foundation, a further €80 million in creditor claims were recognized, bringing the total amount of recognized claims in these proceedings to €130.6 million. However, this sum is only a fraction of the €2.36 billion originally claimed, as reported by ORF.
The total scale of the bankruptcy is much greater: total claims in the Signa complex are now estimated at up to €30 billion. René Benko personally is currently facing claims of around €2.7 billion. Despite the millions now recognized, credit protectors see the prospects for the ultimate satisfaction of all creditor claims as bleak. In the end, only around €3 million is likely to be distributed – a “very optimistic view.” The private foundation's goal of preventing the incurrence of real estate transfer taxes in Austria and Germany by holding 10.1 percent of Signa Holding GmbH is now obsolete. The WKStA is also conducting further investigations against Benko, including for fraud (misrepresentation of economic performance in connection with a loan extension) and breach of trust (employee shares).