San Francisco Frontiers - Fallen Austrian property tycoon Benko goes on trial over fraud charges

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.

Creditors, including in the United Arab Emirates and Thailand, claim billions of euros from Signa, whose vast portfolio used to include New York's Chrysler Building and several prestigious department store chains in Europe.

On the first day of his trial in the city of Innsbruck, Benko pleaded not guilty to the charges, according to a spokeswoman.

During the hearing, which wrapped up after about two hours, Benko accused the prosecution of making "allegations" that were "at the height of cynicism". He declined to answer any questions.

Wearing a black suit, but not in handcuffs, he had arrived at the court, which was placed under tight security early Tuesday, Austrian media reported.

The trial is expected to continue on Wednesday morning, with the court due to reach a verdict on the same day, a court spokeswoman said.

Benko, 48, who has been in custody since being arrested at his villa in Innsbruck in January, could face up to ten years in prison if he is found guilty.

He has denied all accusations of wrongdoing.

More than a dozen other suspects are also being investigated over the insolvency, with damages currently estimated at around 300 million euros ($350 million), according to prosecutors.

In his current court case, Benko is accused of concealing assets amounting to some 660,000 euros at the expense of creditor claims in the course of the insolvency.

Benko in late 2023 allegedly gifted 300,000 euros to his mother, and made an advance payment of about 360,000 euros for rent and operating expenses of his villa that prosecutors deemed "economically unjustifiable".

In September, Benko was hit with another insolvency-related fraud charge, with prosecutors accusing him and a co-defendant of hiding cash as well as 11 luxury watches, watch straps and cufflinks worth a total of 370,000 euros in a relatives' safe.

In December 2024, Austrian authorities questioned Benko in Innsbruck after Italy issued an arrest warrant against him for allegedly participating in a criminal organisation.

An Innsbruck court ruled that Benko should not be extradited as the case can be probed in Austria.

E.Jones--SFF