The pre-trial detention for former real estate billionaire René Benko has been extended until February 23rd. The Vienna Regional Court announced this on the day before Christmas.
Benko’s lawyer had requested that his pre-trial detention be ended after eleven months. However, the court still saw a strong suspicion of a crime and the risk that the founder of the insolvent real estate and trading group Signa could commit further crimes. The court also rejected the lawyer’s argument that the detention was no longer proportionate.
Benko was arrested in January and taken into custody. He is currently in prison in Innsbruck. Austria’s economic and corruption prosecutor’s office (WKStA) suspects the 48-year-old of fraud, breach of trust and bankruptcy.
Two convictions so far
Benko has already been convicted in two trials. The judgments are not yet final. In October, the Innsbruck regional court found him guilty of damaging creditors. A two-year prison sentence was imposed. The court found that Benko had set aside assets through a gift of 300,000 euros.
On December 10th he was again convicted of damaging his creditors. This time there was only a suspended sentence of 15 months and a fine. It was about valuable watches and cufflinks that had been lost to creditors.
Further charges are imminent
The two proceedings were only a small excerpt of the allegations that the WKStA was investigating in connection with the Signa bankruptcy. Further charges are considered certain.
Benko had built up a billion-dollar fortune over around 20 years with his complex real estate and trading empire Signa. Rising interest rates and construction costs, as well as risky acquisitions such as those of the German department store groups Karstadt and Kaufhof, drove Signa into bankruptcy.