The Austrian Supreme Court has upheld the conviction of former billionaire René Benko, founder of the Signa real estate group, for insolvency fraud in the first criminal case linked to the collapse of his empire. He had been sentenced in the first instance to two years in prison on one of the charges.
In its ruling issued Thursday, the country's highest court upheld the first part of the conviction, while partially overturning the judgment on a second charge. The court ordered a retrial for this second offense, for which Benko had been acquitted.
This new trial must result in a new overall sentence that takes into account all the judicial decisions. The proceedings are part of a larger case related to the bankruptcy of the Signa group, which constitutes one of the most significant financial crises in Austria's recent history.
At its peak, the group founded by René Benko controlled a vast portfolio of prestigious real estate and commercial assets, including the Chrysler Building in New York and the Selfridges department stores in the UK. The group's collapse at the end of 2023 left behind an estimated debt of around €1,5 billion, according to prosecutors.
Austrian judicial authorities consider this case the starting point for the first criminal proceedings directly related to Signa's bankruptcy. The investigation continues to examine responsibility in what has become the largest bankruptcy ever recorded in Austria.
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