INNSBRUCK, Austria, Dec 10 (Reuters) - 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
Austrian Tycoon Rene Benko Guilty of Hiding Assets
By Francois Murphy
INNSBRUCK, Austria, Dec 10 (Reuters) - Austrian ex-property tycoon Rene Benko was found guilty of insolvency fraud on Wednesday for hiding valuables from creditors, including two luxury watches and cuff links found in a safe, his second conviction on that charge.
The case stems from a sweeping investigation into crimes that prosecutors suspect were committed in connection with the collapse of Benko's property group Signa from 2023 onward. It was Austria's biggest postwar bankruptcy and burnt investors including blue-chip companies in Germany and Switzerland.
Wednesday's trial focused on whether, as part of Benko's insolvency as an entrepreneur, he and his wife Nathalie were hiding from creditors 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 in her aunt's basement.
THEY GAVE EACH OTHER LAVISH GIFTS
The court found Benko guilty in relation to just two of the watches and the four pairs of cuff links, handing him a 15-month suspended prison sentence and a fine of 4,320 euros. Nathalie Benko was found not guilty.
For other items, the court accepted some of the defence's arguments, such as that some of the watches had been given to Benko's sons as gifts when they were aged six and 11, even if their father himself sometimes wore them.
Benko had denied any wrongdoing in the case and had pleaded not guilty. However his lawyer, Norbert Wess, told reporters it was not yet clear whether his client would lodge an appeal.
"If one won 9-2 in the football (soccer) World Cup, that would be nice. Here, it is still unsatisfactory from the defence's point of view," Wess said after the ruling, referring to the court's exoneration of Benko over nine of the watches in question.
The Benkos gave each other lavish gifts such as watches, including a gold Patek Philippe and pieces by Hublot and Omega, Wess told the court earlier in the day.
BENKO'S SECOND CRIMINAL CONVICTION
Wednesday's case is the second of two criminal cases against Benko that prosecutors have brought to trial. They are also investigating him and others on suspicion of offences including fraud in connection with Signa's collapse.
Prosecutors estimate the damage caused by the various suspected crimes 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 faced carries a sentence of up to 10 years in prison.
It is Benko's second conviction 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.
($1 = 0.8594 euros)
(Additional reporting by Christine Uyanik Editing by Frances Kerry and Gareth Jones)
