OGH to Review First Conviction of René Benko for Fraudulent Bankruptcy (Kridastraftat)

Benko's defense attorney Norbert Wess is contesting his client's conviction. He had confirmed in advance to the APA that his client would not come to Vienna for the hearing. Benko, who is in pretrial detention in Innsbruck, will not come to Vienna for the hearing. The Prosecutor General's Office, which advises the OGH in such cases, recommends confirming Benko's guilty verdict but overturning the partial acquittal.

The senior justices are not bound by the recommendations of the Prosecutor General's Office, but they usually follow them. If the acquittal is overturned, the Innsbruck Regional Court would have to retry the case on this point. The presumption of innocence applies.

Recommendation of the Prosecutor General's Office

Before the OGH, the matter now concerns the appeals of the defendant as well as of the Economic and Corruption Prosecutor's Office (WKStA). At the core is the question of whether the first-instance conviction for fraudulent bankruptcy (Kridastraftat) stands or whether parts of the verdict must be overturned. The Prosecutor General's Office recommends confirming Benko's guilty verdict but overturning the partial acquittal.

The background of the indictment includes, among other things, the allegation that Benko gifted his mother 300,000 euros and thereby withheld these assets from his creditors. Benko allegedly gave his mother 300,000 euros as a gift and thus withheld the money from his creditors. This allegation forms a substantial part of the first-instance conviction for fraudulent bankruptcy, that is, the deliberate harming of creditors in insolvency proceedings.

The WKStA, in turn, is appealing the acquittal on the second charge, which concerns a rent prepayment of 360,000 euros for a villa in the Innsbruck district of Hungerburg. Here, Benko was acquitted at first instance. The prosecution now seeks to have this acquittal overturned and the case retried before the Innsbruck Regional Court.

Charge of Rent Prepayment

The Prosecutor General's Office, which advises the OGH in such cases, recommends confirming Benko's guilty verdict but overturning the partial acquittal. In doing so, it follows the WKStA's reasoning at least in part. Should the OGH follow the recommendation, the first-instance conviction regarding the gift to the mother would become final, while the question of the rent prepayment would have to be retried.

The Signa founder denies all charges. He had already rejected any guilt in the first-instance proceedings. This line of defense will also be maintained in the further proceedings. Benko's defense attorney Norbert Wess is contesting his client's conviction.

Line of Defense

René Benko is the founder of the Signa Group, which was once among the largest real estate and retail conglomerates in Austria and, after financial difficulties, was restructured in insolvency proceedings. The criminal-law processing of the company's history has occupied the Austrian judiciary for some time.

Beyond the legal questions, the case also has economic significance, as numerous creditors and investors are affected by the developments. The question of whether assets were set aside before the insolvency proceedings is at the center of the investigations against Benko.

In terms of procedural law, it should be noted that the OGH, as the highest court in civil and criminal matters, does not itself take evidence, but merely reviews whether the first-instance verdict was lawfully reached. A reversal therefore does not automatically mean an acquittal, but merely the need for a new trial before the Innsbruck Regional Court.

Procedural Significance

The hearing in the Great Hall of the Vienna Justizpalast is public, which is rather the exception in proceedings before the OGH. The session from 10 a.m. to 12 p.m. is scheduled for just a few hours, suggesting that the senate considers the matter manageable. A decision is expected immediately after the end of the hearing.

For the Austrian judiciary, the Benko case is one of the most prominent economic criminal cases of recent years. Fraudulent bankruptcy (Kridastraftat), that is, the deliberate disadvantaging of creditors in insolvency proceedings, is among the offenses regularly charged in such constellations.

Possible Consequences

Should the OGH confirm the guilty verdict, the two-year prison sentence from October 2025 would become final. Should it instead overturn the guilty verdict, the entire case would have to be retried before the Innsbruck Regional Court. In the event of confirmation of the guilty verdict and reversal of the acquittal on the second charge, further proceedings in Innsbruck would be expected.

Observers of the proceedings expect the OGH to follow the recommendations of the Prosecutor General's Office; the senior justices are not bound by the recommendations of the Prosecutor General's Office, but they usually follow them. A decision is expected as early as Thursday.

Benko himself will not attend the hearing in person. He is in pretrial detention in Innsbruck. A transfer to Vienna was not planned, as his defense attorney Norbert Wess confirmed to the APA. The defense is apparently focusing on submitting its legal arguments in writing.

The WKStA, as the competent prosecutor's office for economic crimes and corruption, had already announced after the first-instance conviction that it would appeal the verdict on individual points. Now the ball is in the Supreme Court of Justice's court, which will make a landmark decision in the coming hours.