Trial in Innsbruck
Witness puts René Benko’s insolvency assets at 900,000 euros
On the second day of the trial against investor René Benko, the witnesses are questioned. They should say whether the defendant has harmed creditors. One mentions an important number.
In the trial against the Austrian investor René Benko, an insolvency administrator estimated the 48-year-old’s assets in the so-called mass account at 900,000 euros. In contrast, the recognized claims of the creditors amount to around 45 million euros, said insolvency administrator Andreas Grabenweger.
The focus of the appearance of several witnesses before the Innsbruck regional court was the question of whether Benko had damaged the interests of creditors by paying rent in advance of 360,000 euros for a property shortly before the bankruptcy. Benko denies the allegations.
The ex-billionaire didn’t live in the house for a long time, even though it was in great condition, said Grabenweger. The day before, the defense had argued that the advance payment was made because the investor, who had hit the negative headlines, wanted to create a retreat for his family.
A mass account is set up by the insolvency administrator and is used to manage the insolvency estate and to process all financial transactions during the insolvency proceedings. The insolvency estate refers to the entire assets of an insolvent company or person that are used to satisfy the claims of creditors.
Verdict for René Benko expected on Wednesday afternoon
The public prosecutor’s office accuses the founder of the real estate and trading group Signa of having damaged his creditors through the advance payment of rent costs and a gift to his mother of 300,000 euros. The steps were taken when the insolvency of the Signa empire was foreseeable for Benko. The offense, which is called fraudulent Krida in Austrian criminal law, carries a sentence of up to ten years in prison.
In the current case, Benko has to answer for his insolvency as a sole proprietor. The indictment is just one strand of a total of 14 cases in which the Austrian judiciary alone is investigating, mostly for serious fraud and breach of trust.
A verdict is expected later this afternoon. No matter what it is, the 48-year-old will probably have to face further charges and will initially remain in custody.
DPA
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Source: Stern
