Convicted Signa founder Benko is allowed to go to house arrest

The real estate investor René Benko moves from prison to house arrest with an electronic ankle bracelet. A corresponding application from the Signa founder was granted by the Innsbruck regional court, as a court spokeswoman and his painter announced. According to the regional court, there is a ban on contact with Benko, including some people from the Signa Group environment.

His lawyer had argued that Benko could only adequately prepare for further proceedings outside of prison. The defense attorney assumes that his client will be placed under house arrest this week.

From billionaire to bankrupt

Benko had amassed a fortune worth millions by buying real estate. In Germany, the entrepreneur temporarily owned, among others, the Galeria department store chain and the KaDeWe luxury department store in Berlin. He was also the builder of the Hamburg Elbtower, which is still in ruins today.

In March 2024, Benko filed for personal bankruptcy and was arrested in January 2025. In the extensive Signa complex, Austria's economic and corruption prosecutor's office (WKStA) suspects the once very respected businessman of fraud, breach of trust and bankruptcy. More charges could follow.

Already first conviction

In September, Benko was sentenced to two and a half years in prison. The Innsbruck regional court considered it proven that the 49-year-old had fraudulently damaged his creditors.

According to the court, he made an advance on rent costs amounting to 360,000 euros for a property in Innsbruck, even though his Signa company empire was already very critical.