Austrian ex-billionaire Benko's second fraud trial opens

A second trial of Austrian former property billionaire Rene Benko for insolvency fraud opened on Wednesday after he was handed a two-year prison sentence eight weeks ago, as he faced a potential raft of cases against him.

The case stems from a sweeping investigation into crimes prosecutors suspect were committed in connection with the collapse of Benko's property group Signa from 2023 onward. It was the biggest postwar bankruptcy in Austria and burnt investors across Europe including blue-chip companies in Germany and Switzerland.

Wednesday's trial focuses on whether, as part of Benko's insolvency as an entrepreneur, he and his wife were hiding from creditors the 120,000 euros ($140,000) in cash plus almost 250,000 euros' worth of items including cuff links and 11 luxury watches found in a private safe, according to prosecutors.

The safe was in the house of relatives of his wife, Nathalie Benko, Austrian media reported. She is a co-defendant in the trial.

Benko denies wrongdoing, and his lawyer was quoted by Austrian media as saying Benko would plead not guilty. He did not respond to a request for comment by Reuters.

Nathalie Benko's lawyer could not be reached for comment.

Prosecutors estimate the damage caused by various suspected crimes connected to the Signa collapse totals around 300 million euros.

While the sums involved in Wednesday's trial are a tiny fraction of that, the charge Rene and Nathalie Benko face carries a sentence of up to 10 years in prison.

A conviction would be Benko's second after he was found guilty of the same offence in October but not guilty of a second count.

Benko is appealing the guilty verdict while prosecutors are appealing the not guilty verdict.

The court has allotted two days for the trial but the second day may not be needed.