Austrian former billionaire Rene Benko went on trial on Tuesday in Vienna in connection with the collapse of his property empire, Signa Group — once one of Europe’s largest real estate firms. At its peak, Signa held high-profile assets such as stakes in New York’s Chrysler Building and the British department store Selfridges, before becoming the biggest casualty of Europe’s property downturn in 2023. Prosecutors estimate the total damage from the group’s downfall at around €300 million ($348 million).

The first of two cases filed against Benko accuses him of insolvency-related fraud involving about €660,000 in questionable transactions. Investigators allege that part of the money was used for unjustifiable rent and expenses amounting to €360,000, while the remaining €300,000 was allegedly gifted to relatives to conceal funds from creditors. The charge alone carries a potential prison sentence of up to 10 years.

Benko, 48, has denied all allegations. This trial marks his first public appearance since his arrest in January, after which he has remained in custody. Signa’s collapse triggered Austria’s largest-ever bankruptcy, impacting several major creditors including Deutsche Bank, Allianz, Julius Baer, and Raiffeisen Bank International, which have filed billions of euros in claims.

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