Customers warned to switch direct debits

Customers of a Forum Finance entity are being warned they are ‘on notice’ to pay outstanding amounts.

Forum founder Bill Papas's racing Audi. Westpac is trawling through assets held by Mr Papas, hoping to retrieve funds caught up in the alleged fraud.

Customers of a Forum Finance entity that changed ownership after $400m in serious fraud allegations against the group became public, are being warned they are “on notice” to pay any outstanding amounts.

An email dated September 3, and obtained by The Australian, noted the ownership change for the Forum entity’s goodwill and rights to service and supply parts and materials to equipment such as printers and photocopiers. The goodwill and rights to leases in that entity were sold to a firm owned by a relative of Forum founder Bill Papas.

The transaction involved technology server firm Our Kloud, which also held Forum’s data, and whose owner and boss is Eric Constantinidis.

Customers of the Forum entity transferred to Our Kloud were told in the email “contractual rights” were transferred and as at July 22 any amounts due needed to be paid to the new owner.

“You are hereby on notice as the debtor of your obligations to henceforth pay as and from 22 July 2021 any monies due,” the email said. It also lists the Our Kloud bank account number.

The email was signed off by administrator of that Forum entity, Mackay Goodwin, which has been contacted for comment.

The latest development follows Our Kloud previously using pressure tactics to seek to lock in Forum customers.

Last month, Our Kloud contacted Forum customers urging them to quickly switch over their direct debits.

A letter sighted by The Australian at the time, sent by Mr Constantinidis and former Forum manager Craig Rollinson, used heavy-handed language to encourage a customer to set up its payments with the new owner.

“If you have a direct debit agreement in place, YOU MUST complete the new direct debit authority attached to this notice within two business days,” it said.

But the change in ownership to Our Kloud has already seen some commercial partners sever ties with the firm.

A Konica Minolta Business Solutions Australia spokeswoman last month said after the Forum customer lists were sold to Our Kloud it had ceased accepting orders for goods and services from the entities.

Westpac is pursuing Forum, Mr Papas and business associate Vincenzo Tesoriero over an alleged $300m fraud, linked to forged signatures in contracts for the leasing of equipment and the finance behind the purchasing of goods. Societe Generale and Japan’s Sumitomo Mitsui Banking Corporation have also lodged Federal Court legal action, with total claims amounting to about $400m.

In some instances the banks have claimed the goods mentioned in leases did not exist.

Another Forum entity, Autonomous Energy, was sold by then administrator and current liquidator of more than 20 Forum entities, McGrathNicol. Existing management of the solar company and an investor acquired the business.