Bars instead of glamor

Benko sits in a solitary cell with video surveillance

Bars instead of glamor for René Benko in the Josefstadt prison

(Bild: Krone KREATIV/APA/HELMUT FOHRINGER, GEORG HOCHMUTH / APA / picturedesk.com)

Sausage sandwiches instead of caviar and bars instead of an opulent mountain panorama: René Benko's everyday life in the Josefstadt prison in Vienna is very different from his previous life of luxury in Tyrol. 

Instead of lavish parties and conspiratorial meetings with financially strong business partners, René Benko is said to have spent the first night in a video-monitored solitary cell. As the "Krone" has learned, this is standard procedure in such high-profile cases.

Decision on detention today
A decision is to be made early this afternoon on whether to remand him in custody. Benko was also transferred to Vienna for this reason because the competent judge and the prosecuting authority - the Public Prosecutor's Office for Economic Affairs and Corruption - are based in the federal capital. 

In the Josefstadt prison, not only the corridors and common areas but also some of the cells are under video surveillance.

(Bild: picturedesk.com/HELMUT FOHRINGER / APA / picturedesk.com)

The Vienna Regional Criminal Court has 48 hours to decide on the pre-trial detention after the WKStA submitted the application on Thursday. The 47-year-old Tyrolean is accused of defrauding investors and harming creditors - we reported. 

Benko remains silent on the allegations
In an initial hearing in Innsbruck, Benko did not want to comment on the allegations. However, in this case, the old prison adage about refusing to make a statement "Say yes, stay there, say no, go home" is unlikely to help him - it is generally expected that Benko will be remanded in custody.

The "Gray House" - the Vienna-Josefstadt prison where René Benko is currently awaiting the decision on his pre-trial detention.

(Bild: picturedesk.com/ROLAND SCHLAGER / APA / picturedesk.com)

A view of the inner courtyard of the Josefstadt prison

(Bild: picturedesk.com/HELMUT FOHRINGER / APA / picturedesk.com)

The judiciary does not currently believe that there is a risk of absconding. This is significant in that only the risk of absconding can be subsumed under bail, not the risk of committing a crime or concealing a crime. If the current grounds for detention remain in place, Benko would have no chance of escaping detention by depositing a sum of money in exchange for more lenient measures. In principle, a detention order is initially imposed for a period of 14 days.

Trustee in bankruptcy: "Effects cannot be estimated"
Andreas Grabenweger, the insolvency administrator in Innsbruck who is dealing with the ongoing insolvency proceedings against Benko as an entrepreneur, did not want to comment on the latest development. "The possible effects of the arrest cannot be estimated at present," Grabenweger said. Most recently, the trustee in bankruptcy filed a lawsuit against Benko's mother as the first founder of two private foundations - including the aforementioned Laura Private Foundation.

With the lawsuit, Grabenweger ultimately wanted to ensure that the rights of the founders were transferred to the insolvency administrator or trustee in bankruptcy. He assumed that Benko, who was once worth billions, had always retained control of the two private foundations himself. An accusation which, as far as the Laura Private Foundation is concerned, has now apparently led to the WKStA ordering his arrest, among other things. A first public hearing in the civil law case will take place next Thursday at the Innsbruck Regional Court.