Business tycoon Banco pleads innocence as his trial begins in Austria on fraud charges news

Bankrupt Austrian property tycoon Ren Benko denied charges of fraud and harming his creditors during the stunning collapse of his sprawling business empire, as his fraud trial began on Tuesday.

His lawyer, Norbert Weiss, told a court in Innsbruck in Austria that Benko had fought “to the point of physical exhaustion” to save the Cigna Group, a private conglomerate he founded in 2000, which at its peak acquired stakes in New York’s Chrysler Building and several prestigious supermarket chains in Europe.

The 48-year-old former billionaire is accused of hiding huge assets while his company was facing bankruptcy in 2023, which allegedly harmed his creditors.

Tuesday witnessed Benko’s first public appearance after 9 months of pre-trial detention. He arrived wearing a dark suit, white shirt and red tie. During the prosecution’s presentation, he shook his head and crossed his arms. When asked about his income, he said he did not have any, and refused to comment on his assets or debts.

The trial is scheduled to last two days, during which 8 witnesses will testify. If convicted, Benko could face up to 10 years in prison. The current proceedings cover only a small part of the broader investigation into Cigna’s bankruptcy.

Billions in claims

Cigna’s creditors – including leading companies such as Deutsche Bank, Allianz, Julius Baer, ​​Raiffeisen Bank International, and others from the UAE and Thailand – have filed claims worth billions of euros against the group since its collapse.

More than a dozen other suspects are also being investigated in the insolvency case, and the damage is currently estimated at around 300 million euros ($350 million), according to prosecutors.

In the case currently before the court, Benko is accused of hiding assets worth about 660 thousand euros at the expense of creditors’ claims during the insolvency period.

Benko is alleged to have gifted his mother in late 2023 with the sum of 300,000 euros, and made an advance payment for the rent and operating expenses of his villa, which the prosecution considered “economically unjustified.”

In September, Benko was charged with another bankruptcy fraud charge, as public prosecutors accused him and another defendant of hiding sums of cash, in addition to 11 luxury watches, watch bracelets, and cufflinks, with a total value of 370,000 euros, in a relative’s safe.

In December 2024, Austrian authorities questioned Benko in Innsbruck after Italy issued an arrest warrant for him on charges of joining a criminal organization. A court in Innsbruck ruled that Pinko should not be extradited, as the case could be investigated in Austria.