Rene Benko, a former Austrian billionaire whose real estate group Signa owned stakes in the New York Chrysler Building and the British department store chain Selfridges, has appeared before an Austrian court. He faces up to ten years in prison.
According to the Bloomberg Billionaires Index, at the peak of his wealth, Benko's fortune exceeded $4 billion. He was one of the most influential businessmen in Europe, and his Signa Group controlled several major properties: from the Vienna shopping district "Golden Quarter" to the New York Chrysler Building.
For two decades of aggressive growth, he took advantage of record-low interest rates, attracting billions from the largest banks and investors in Europe. But when the era of "cheap money" came to an end, Signa's business model began to collapse.
The COVID-19 pandemic was the first blow. The boom in remote work reduced the demand for office space. In November 2023, Signa Holding filed for bankruptcy, marking the largest corporate collapse in Austria's history.
Benko appeared in court for the first time after his arrest in January of this year. This is his first public appearance after nine months of detention. He was suspended from his position as chairman of Signa back in November last year – his own shareholders stripped him of control over the group he had built for two decades.
The court is examining a case involving transfers of 660,000 euros, which prosecutors allege he attempted to conceal from creditors. Part of the funds – about 360,000 euros – was spent on rent and initial expenses for a house. The remaining 300,000 euros, according to investigators, were transferred to relatives as gifts.
Benko, who has denied his guilt from the outset, could face up to ten years in prison if the court finds him guilty.
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