Archive · 23 Sep 2026
Austrian Court Increases Ex-Billionaire Benko’s Sentence After Retrial
An Austrian court held a new trial for former property tycoon René Benko.
The court increased his prison sentence from two years to 30 months.
The case involved money paid in advance for rent on a house in Innsbruck.
Prosecutors said the payment did not make financial sense while Benko’s company was struggling.
Benko said he believed the company could avoid bankruptcy.
The court found him guilty over the rent payment but cleared him over other house expenses.
Time he has already spent in custody will count toward his sentence.
The case is part of a larger investigation into the collapse of his company, Signa.
An Innsbruck court increased René Benko’s prison sentence to 30 months from two years.
The court convicted Benko over a roughly €360,000 advance rent payment for an Innsbruck house.
Benko was acquitted over additional advance-paid operating expenses for the house.
He pleaded not guilty, saying he believed his company could avoid bankruptcy when the payments were made.
The case stems from the collapse of Signa, Austria’s biggest post-war bankruptcy, which caused losses for investors across Europe.
- Who
- Former property tycoon René Benko, prosecutors, and the Innsbruck State Court.
- What
- Benko was convicted at a retrial on an insolvency fraud charge, and his sentence was increased to 30 months.
- When
- At a retrial on Tuesday, September 22; he has been in custody since January 23 of the previous year.
- Where
- The Innsbruck State Court in Innsbruck, Austria.
- Why
- The court found that an advance rent payment made while Signa was in financial difficulty constituted insolvency fraud and put money beyond creditors’ reach.
Benko’s Position
Prosecution and Court’s Position
Whether the payment was fraudulent
Benko’s Position
Benko pleaded not guilty and said he believed his company could avoid bankruptcy when the payment was made.
Prosecution and Court’s Position
The court found the advance rent payment constituted insolvency fraud and was intended to put money beyond creditors’ reach.
Economic rationale for the house payment
Benko’s Position
Benko disputed the criminal allegation concerning the payment.
Prosecution and Court’s Position
Prosecutors argued that the roughly €360,000 advance rent payment made no economic sense while Signa was already in financial difficulty.
- Sentence
- 30 months in prison, increased from the original two-year sentence
- Conviction
- Insolvency fraud involving an advance rent payment of about €360,000
- Acquittal
- Benko was cleared over additional operating expenses for the house paid in advance
- Maximum sentence
- The court said the maximum possible sentence was 10 years
- Custody
- Time already spent in custody since January 23 will count toward the sentence
- Separate case
- Benko received a 15-month suspended sentence for insolvency fraud in December
- Company collapse
- Signa’s 2023 failure was Austria’s biggest post-war bankruptcy