Forum Finance boss Bill Papas risks fines, jail for not filing ASIC property report

Forum Finance boss Bill Papas, who is being pursued by Westpac and other banks for alleged fraud, is also at risk of regulatory action.

As part of a long list of Forum entities entering administration and liquidation, Bill Papas was supposed to lodge a report on company activities and property, part of which is submitted to ASIC.

Forum Finance boss Bill Papas, who is being pursued by Westpac and other banks over alleged fraud, is at risk of regulatory action over his failure to lodge key documents linked to the company’s administration and liquidation.

Westpac, Societe Generale and SMBC Leasing and Finance have separately commenced Federal Court action against equipment leasing firm Forum and Mr Papas, over alleged fraud amounting to $400m.

As part of a long list of Forum entities entering administration and liquidation, Mr Papas was supposed to lodge a report on company activities and property (ROCAP), part of which is submitted to the Australian Securities and Investments Commission.

He had sought an extension, although that is expiring, meaning he is likely to be reported by administrator and liquidator McGrathNicol to ASIC, which will decide whether to take action.

ASIC’s website says failure by a company officer to provide a ROCAP or disclose or deliver books and records, represents a “serious breach” of the Corporations Act and a referral to the regulator often results in court action.

Court imposed penalties can include fines of more than $10,000 or imprisonment.

“If an officer fails to comply with court orders to fulfil their responsibilities within the required time, they may commit a continuing offence and be liable to further prosecution. A continuing offence can attract an additional daily fine,” ASIC says.

Sources said Mr Papas had communicated he was unable to provide the report as he no longer had access to Forum’s financial information and records.

An affidavit by Mr Papas, submitted in late July, disclosed he had been in Greece since June 21. That followed his failure to attend a Perth meeting in the prior week to answer questions about an account discrepancy by Forum customer WesTrac.

Westpac and the other banks allege Mr Papas was involved in forging documents to seek finance for leases, often for goods that didn’t exist.

Affidavits filed showed an empire of fast cars, houses, and global business interests were among the assets of Forum Finance directors Mr Papas and Vincenzo Tesoriero.

Westpac, Societe Generale and SMBC are following the money trail to seek to retrieve funds they say were fraudulently obtained, while McGrathNicol is selling off any assets of value and looking to untangle the complex web of entities.

Leases for printers and contracts were sold to technology firm Our Kloud, run by Mr Papas’s cousin, while solar firm Autonomous Energy was sold to a management-led group. McGrathNicol is now seeking the best structure to sell about 600 waste digester machines, that sat within another entity.

Bill Papas may raise ASIC’s ire over his failure to lodge key documents.

The sale process is understood to have been extended given the potential to change the structure to include servicing of customers using the machines.

Westpac’s fraud case alleges huge sums were routed through an entity, Forum Group Financial Services, which despite its name was not under the broader Forum Group structure.

Westpac has also widened its legal claim in recent weeks to include Greek national Anastasios Giamouridis as a respondent.

The bank alleges Mr Giamouridis received funds from Forum Group Financial Services that he was not entitled to. Forum Group Financial Services and those involved in the entity are expected to face more scrutiny in coming weeks.

Pacific Blue Tax Services has been subpoenaed by Westpac for documents relating to its 2018 tax filing for Forum Group Financial Services.

It’s unknown who filed the company’s accounts in the years following.

Statements tendered to the court show funds advanced by Westpac to Forum Finance were on-paid to some of the Forum Group companies from about September 2018 to February 2019.

However, from about February 2019 the funds received by Forum Finance were paid out to Forum Group Financial Services.

Westpac has alleged the latter entity had “no legitimate basis to receive” the vast sums.

Forum’s auditors Rothsay did not audit Forum Group Financial Services.

Rothsay principal Frank Vrachas said his firm via its accounts team only rarely met Mr Papas, Mr Tesoriero and Forum’s finance chief Tony Bouchahine, also known as Moussa Bouchahine.

Mr Bouchahine had reportedly been unreachable to many in the group after going on stress leave around June 23 in the wake of Mr Papas leaving Australia.

Affidavits of EQWE director Luke Price, who dealt with Forum, noted the chaos at the company in a conversation dated June 27.

“Craig thinks Bill is overseas, perhaps Greece,” he said, referring to Forum operations executive Craig Rollinson.

“The Forum CFO Tony Bouchahine has taken ill but is still in Sydney. Bill pushes Tony around.”

Mr Bouchahine was Forum’s CFO from 2012 but it is unclear what role, if any, he had in the separate Forum Group Financial Services.

The Australian presented Mr Bouchahine with detailed questions regarding his role at Forum Group and potential knowledge of Forum Group Financial Services. He declined to comment.