Presiding Judge Andrea Wegscheider announced the verdict at 2 p.m. Signa founder Rene Benko was found guilty of donating €300,000 to his mother. He will serve two years in prison for fraudulent bankruptcy, with time served in pre-trial detention counted. He was acquitted of the advance rent payment for the Hungerburg villa.

The verdict is not final. The defense is likely to file an appeal for annulment and a criminal appeal. Benko's defense attorney Norbert Wess announced after the trial that this was more likely than not filing an appeal. However, the final decision rests with Benko.

In her closing argument, senior public prosecutor Tea Krasa of the Economic and Corruption Prosecutor's Office (WKStA) argued for a"punishment appropriate to the crime and the guilt" or a guilty verdict, while defense attorney Wess advocated for an acquittal. Benko also pleaded"not guilty" on Tuesday.

Regarding the reasoning behind the verdict: The jury, chaired by Wegscheider, was unable to determine, based on the witness testimony, that the apartment at Hungerburg was uninhabitable. The monthly rent of €7,500 paid was"in any case not excessive" considering Innsbruck's rent prices.

Regarding the second charge, which led to the guilty verdict, Benko received €1.5 million from his mother from a loan from the Laura Private Foundation. Shortly afterward, he repaid €300,000 of this amount, followed by another payment from the mother to her son in the millions. However, given the events surrounding the foundations and Benko's insolvency, only one thing mattered to the judge:"Benko received a gift from his mother and then repaid it without any legal grounds. Everything that came after that is irrelevant."

Since the damages now amount to €300,000, a lower penalty (six months to five years in prison) applies. Wegscheider cited an aggravating circumstance as just"a cent short" of falling into the higher category. Benko's clean record is a mitigating factor.

When was the villa on Innsbruck's Hungerburg hill habitable, for which Rene Benko paid approximately €360,000 in advance rent in the fall of 2023? What were the effects of water damage and landslides? And how did the rental agreement between Rene Benko and the property owner, RB Immobilienverwaltung, which in turn belongs to the Laura Private Foundation, come about? This was the main focus of the questioning of the six witnesses in the jury courtroom on Wednesday morning.

An exciting new piece of information also came to light: Benko's defense (not the one representing him in this trial) has filed a complaint alleging false testimony (during the preliminary investigation) against a witness, namely former Signa controller Arthur A. However, Judge Andrea Wegscheider stated that the matter concerned other matters within the larger Signa complex, and that the complaint therefore played no role in this trial.

The question of when the villa became habitable is important because the Economic and Corruption Prosecutor's Office (WKStA) argues that Benko paid four years' rent in advance to deprive creditors of assets in his impending bankruptcy proceedings, and that the house was not habitable. Benko's lawyer, Norbert Wess, calls the allegations false.

"In fine condition"

Fabio A., the structural engineer involved with the villa, testified as a witness that the villa was very much"habitable" at the end of 2023,"albeit somewhat worn." The man reported only "minor water damage." In addition, a slope remediation was due, but ultimately has not yet been completed.

Benko's insolvency administrator, Andreas Grabenweger, who was also called as a witness, stated that he inspected the villa on Innsbruck's Hungerburg with Benko in the summer of 2024. During the inspection, the then-unoccupied house was in"good, I would say noble, condition" inside. A film had been applied outside due to landslides. In his capacity as landlord, Grabenweger is demanding the return of the advance payment. After an out-of-court settlement failed, he filed a lawsuit against the landlord, RB Immobilienverwaltung. The landlord refused to repay the advance, arguing that it did not see any enrichment on the landlord's side and that the lease was still valid, since Benko's wife was also named in the contract and also lives there."Ultimately, a court will decide," the insolvency administrator stated. However, from his perspective, it is a"clear-cut matter" and that there is "no doubt" about the claim.

Two former managers from the defunct Signa empire, who appeared as witnesses in court, were able to contribute little to establishing the truth. Marcus M., former managing director of Signa Holding, stated, among other things, that he had not been involved in drafting the lease for the house on Hungerburg. He had only commissioned the structural engineers to inspect the house for renovation and refurbishment. In his opinion, the villa was habitable, despite various water damage. He had attended approximately two viewings.

"Draft contract came from Benko"

Manuel P., former board member of Signa Prime and managing director of RB Immobilienverwaltung, said he was present on behalf of the leasing company when the lease was drawn up and signed it. The draft contract came from Benko. He couldn't comment on the renovation work or the exact condition of the property at the time. He also wasn't present at any inspection. He did know about a landslide and that the building had been vacant for some time—"And there's always something to do in an empty house."

Controller Arthur A. also worked for the real estate company in question. He, too, had once inspected the villa, which, given only"minor damage," would have been habitable for an "ordinary citizen." The idea for the advance rent payment came from Benko himself. His family was supposed to live there after things had become"too turbulent" in the villa in Innsbruck-Igls. The interview with Sandra K., also a former employee, was very brief.

Benko's mother, sister, and wife would also have been summoned. However, they exercised their right not to testify against a relative, as had already been announced on Tuesday. Accordingly, they were not required to appear.

The second allegation, according to which Benko's donation of 300,000 euros to his mother was also a case of fraudulent bankruptcy, took up little space in the morning.