Austria’s first trial connected to the multi-billion-euro collapse of real estate and retail empire Signa opened Tuesday in Innsbruck, with company founder René Benko facing criminal charges.

Benko, 48, is accused of concealing significant personal assets while facing imminent insolvency.

Prosecutors say this harmed his creditors and resulted in damages estimated at approximately 660,000 euro.

If convicted, Benko could face up to 10 years in prison.

He denies any wrongdoing and is appearing in public for the first time after nine months in pre-trial detention.

The two-day trial at the Innsbruck Regional Court has attracted nearly 70 journalists from Austria and abroad. Eight witnesses are scheduled to testify in this high-profile case.

According to the indictment, Benko paid an inflated advance rent and operating fee of 360,000 euro for a property he used.

He also allegedly transferred 300,000 euro to a relative to avoid seizure.

The case is part of a much larger investigation into Signa’s collapse. Austrian authorities are currently pursuing 14 lines of inquiry, including allegations of serious fraud and breach of trust.

A total of 15 individuals, including Benko, are under investigation. Authorities say further charges may also be filed in Germany and Italy as probes into Signa expand.

Austria’s anti-corruption prosecutor estimates total damages at 300 million euro.

Creditors have filed claims worth approximately 27 billion euro, with 9 billion euro officially acknowledged so far.

At his peak, Benko’s fortune was estimated at nearly 5 billion euro.

He rose to prominence through attic renovations before founding Signa, later acquiring high-profile assets including New York’s Chrysler Building.

Signa imploded in late 2023 due to rising interest rates, soaring construction costs, and risky acquisitions like Germany’s Karstadt and Kaufhof chains, ultimately affecting more than 1,100 affiliated companies.

The full economic damage to subcontractors and external partners remains undetermined. Credit protection agency KSV warns the scale of the fallout could rise significantly as investigations continue.

Benko was known for his extravagant lifestyle, reportedly owning a private jet, a 62-meter yacht, and a mansion covering thousands of square metres. Critics say his spending lacked financial discipline.

Signa’s management and supervisory boards are also under scrutiny, with critics accusing them of failing to provide proper oversight during the company’s rapid, debt-fueled expansion. (dpa/NAN)