Court grants house arrest

An Innsbruck court has approved a request to move René Benko, the former property investor and founder of the collapsed Signa group, from custody to house arrest with an electronic ankle tag. The decision came at a review hearing at the regional court, which Benko attended in person. His lawyer, Norbert Wess, told reporters he expects his client to return home in the week of 12 October 2026. Benko, 49, has been in detention since January 2025, first in Vienna and then in Innsbruck. Wess argued that Benko could only prepare properly for upcoming trials outside prison, and a flat of around 60 square metres has already been rented in Innsbruck, partly to protect Benko's family.

Objections and a rare step

A report from the Higher Regional Court (Oberlandesgericht) argued against house arrest, citing a risk that Benko would commit further offences of a similar kind if released. The judge nevertheless granted the application, noting that flight risk had not been assumed in earlier hearings and that the risk of collusion had lapsed after a period in pretrial custody. The ankle tag is expected to be fitted in the coming days, after which Benko can leave the prison. Only one of the 1,863 pretrial detainees in Austria had previously worn such a tag, according to 20 Minuten, which makes Benko's case unusual.

Conviction and the rent prepayment

In September 2026 the Innsbruck regional court sentenced Benko to two and a half years, or 30 months, for fraudulent damage to creditors, a ruling that is now final. The case centred on a prepayment of 360,000 euros in rent and running costs for a villa in Innsbruck, paid in autumn 2023 when the Signa group was close to insolvency, even though the property was initially uninhabitable after a landslide. Prosecutors considered the payment economically and factually indefensible, and argued the money came from a private foundation named after Benko's daughter Laura, eventually flowing back there through a circular movement of funds. Benko had already received a two-year sentence in October 2025 for the same suspicion, but the Supreme Court (OGH) overturned an acquittal on part of the prepayment, forcing a retrial and a new sentence. Having served two thirds of the 30-month term in custody, he was released conditionally, but pretrial detention continued in another proceeding.

Further charges and the wider Signa case

The Austrian economic and corruption prosecutors (WKStA) suspect Benko of fraud, breach of trust and bankruptcy-related offences, and further charges could follow. Prosecutors are investigating in 17 cases linked to the Signa collapse, although Benko is not a suspect in all of them. His next hearing is set for 4 and 5 November 2026 at the Innsbruck regional court, on allegations of serious fraud and damage to creditors. Prosecutors allege he gave a false guarantee to an investor and harmed that investor's foundation by around five million euros, and N-tv identifies the party as former Strabag chief Hans Peter Haselsteiner and his family foundation. Forbes put Benko's fortune at 5.5 billion euros in summer 2023, before the fall, and Trento prosecutors have investigated some of his property deals in northern Italy.