Forum Finance boss Bill Papas pledges to return to face fraud allegations

Forum Finance boss Bill Papas will not divulge his whereabouts to his solicitor, but will return to Australia to confront allegations of fraud.

The Rozelle residence in Sydney of Forum Finance managing director Bill Papas.

Forum Finance boss and soccer identity Bill Papas will not divulge his exact whereabouts to his solicitor, but has pledged to return to Australia from Greece on Saturday to confront serious allegations of fraud.

The explosive revelations were made in a Federal Court hearing on Wednesday, where Mr Papas’s and Forum’s legal representation failed in attempts to delay the appointment of provision liquidators on Thursday and another hearing on Friday.

Judge Michael Lee also made an order that restrained Forum representatives “from deleting or altering” – other than in the normal course of business – any data held on servers that may be relevant to the case.

Westpac has taken legal action against leasing group Forum and Mr Papas, whose full name is Basile Papadimitriou, relating to alleged fraud and a gross exposure to the bank of $294m. The after-tax amount is $200m.

Societe Generale has launched separate court action relating to allegations of fraud against Forum in the amount of $9m. Both actions include alleged forgery, missing goods and discrepancies in customer leasing and bank accounts.

Panetta Lawyers principal Rocco Panetta – who is representing Mr Papas – said he had communicated with his client on several occasions since early July, but Mr Papas would not disclose his exact location.

Mr Panetta said Mr Papas had committed to return to Australia, and cited a screenshot received of a Japan Airways flight he had booked to return, with arrival slated for Saturday. He also noted Mr Papas would need to attend mandatory Covid-19 hotel quarantine on his return.

“I understand he’s in Greece. I don’t understand which country he is in to make his way back here,” he said.

“He’s made a decision to attend to these serious allegations against him personally and to the company. He told us he’d come back.”

But Mr Panetta said he wasn’t able to get proper instructions or prepare an affidavit for Mr Papas due to technical issues, intermittent internet connections and him not having access to a printer.

Mr Panetta noted his firm had started preparing an affidavit of Mr Papas’s assets, but it was not complete.

“We are taking advice on whether it may, or may not, tend to incriminate him and whether we need to seek, or avail ourselves of section or paragraph 9A of the orders,” he said.

No one had seen Mr Papas in several weeks in Australia and his Rozelle house in Sydney has been deserted.

An iPad and laptop were seized in a search on the property, which is owned by former Forum director Vincenzo Tesoriero

Late on Tuesday, a black BMW pulled into the car port, with neighbours reporting seeing lights on in the house.

However, the mail has not been collected and much remains undisturbed around the house.

When The Australian visited on Wednesday the car remained at the property, but the home’s front door went unanswered.

Mr Papas and Forum have not responded to repeated requests for comment since Westpac disclosed on Friday it had launched legal action.

Forum Finance managing director Bill Papas.

Mr Papas was until Friday evening the president of Sydney Olympic Football Club and last year bought Greek soccer team Xanthi FC.

Questions started being raised about his whereabouts when he failed to attend a meeting in Perth in mid-June to address concerns about discrepancies with a Forum client’s account.

Mr Papas’s and Forum’s legal representation were on Wednesday seeking a delay of the appointment of a provisional liquidator, noting it was a “drastic step” and argued Westpac had protections in place via asset freezing orders. They also wanted Friday’s hearing delayed to facilitate Mr Papas’s return.

“The status quo is obviously, at the moment, comprehensively preserved by the extensive freezing orders,” Forum’s barrister Andrew Martin said.

“There are obviously some very serious allegations, if not perhaps the most serious of allegations, made in these proceedings against the first respondent at least. The adjournment I seek is only for a sufficient period to enable a statement of claim and defence to be put on.”

But Justice Lee noted “curious aspects” of Mr Panetta’s statements and highlighted Mr Papas had already missed several court deadlines. He said Mr Papas could engage with the court electronically if he wished to convey arguments in his defence, or on the appointment of provisional liquidators.

“Presently the solicitor understands that Mr Papas has an intention to return and this intention has been confirmed by somebody described as his girlfriend,” the judge added.

“But we are left at present in the position that Mr Papas is somewhere in Europe, yet refuses to tell even his solicitor his location.”

Justice Lee said he would allow evidence to be submitted to the court by Mr Papas if it were relevant.

“At the moment, the prospect of Mr Papas giving any relevant evidence is entirely speculative, but those representing him can rest assured that I will facilitate any steps that are proposed to be taken to allow Mr Papas to apprise the court of any matters that he considers relevant.

“In circumstances where it is necessary that these implications will be dealt with very quickly, I’m not satisfied the appropriate exercise at my discretion is to adjourn the hearing on Friday and it should proceed.”

Westpac counsel Jeremy Giles, SC, urged Justice Lee to make orders to compel the holders of Forum’s computer servers to provide access, after being unable to obtain access for days.

Mr Giles said there was “a lack of engagement” by firm Our Kloud, noting “a slight concern that a director and shareholder of the company appears to be Mr Papas’s cousin”.

“I can’t tell you it’s other than a genuine and honestly run business, but there is a family link,” he added.

Mr Giles noted the risk that Forum’s funds could be further dissipated if there were further case delays.

“We do not know, because the company has the records of course, where this very large sum of money … has gone.”

He also said the bank’s case would show that almost all of 97 Forum leasing contracts were false, showing “serious dishonesty”.