NSW Financial Crimes Squad opens investigation into Forum Finance and Bill Papas

NSW’s Financial Crimes Squad is acting on a referral by the police and has started a formal investigation into Forum Finance and its founder Bill Papas.

Forum Finance founder Bill Papas, pictured in Greece earlier this month, is entangled in a $400m fraud investigation by the NSW Financial Crimes squad.

NSW’s Financial Crimes Squad is acting on a referral by the police and has started a formal investigation into Forum Finance and its founder Bill Papas, amid serious allegations of a $400m fraud made by Westpac and two other banks.

NSW Police referred the inquiries to the Financial Crimes Squad in late July after authorities were earlier alerted to allegations of fraudulent activity linked to equipment leases. The Financial Crimes Squad has now decided to initiate and pursue an investigation, which depending on material and evidence provided, may lead to charges being laid.

“Detectives attached to State Crime Command’s Financial Crimes Squad are investigating,” a NSW Police spokeswoman said on Monday. “No further information is available.”

Westpac, French bank Societe Generale and Japan’s Sumitomo Mitsui Banking Corporation have separately lodged Federal Court cases against Forum entities, Mr Papas and his fellow Forum director Vincenzo Tesoriero. They allege a web of fraud was occurring at Forum via forged signatures on equipment leases and that finance was sought to purchase goods that often didn’t exist.

Boss of commercial broker and consulting group EQWE, Luke Price, reported allegations of fraud to North Sydney Police Station on June 24 after inconsistencies in Forum accounts were highlighted by internal investigations.

Westpac also reported its allegations to NSW Police, the banking regulator and the Australian Securities & Investments Commission, ahead of ramping up its Federal Court pursuit of Forum and Mr Papas.

NSW Police has previously said initial inquiries were conducted by North Shore Police Area Command before the matter was referred to the Financial Crimes Squad.

Forum Finance founder Bill Papas.

Mr Papas has been in Greece since June 21, after failing to show up for a Perth meeting on June 15 with management of WesTrac to explain alleged irregularities in accounts. While flagging he wanted to return to Australia, Mr Papas then cited a positive Covid-19 test and lack of funds to purchase a return plane ticket as reasons he couldn’t get back.

The Australian revealed on July 2 Mr Papas had departed Australia and last week foreshadowed the Forum boss was suspected of making transfers totalling hundreds of thousands of dollars from his businesses to personal bank accounts in the four weeks before Westpac lodged court action.

Administrators and liquidators of Forum entities have already sold several parts of the group, including printing and photocopier leases and solar firm Autonomous Energy.

The leases were sold to technology group Our Kloud, run by a relative of Mr Papas, while Autonomous Energy was the subject of a management buyout backed by a private investor.

Sources said after delays and twists and turns the sale of waste digester machines – which break down food waste into water and sat within Forum’s Iugis entity – was set to reach a conclusion this week.

Liquidator McGrathNicol is said to be selling about 300 waste digester machines that were within the premises of customers and a similar number that are being housed in a Sydney warehouse. Customers understood to have the machines include private hospitals, the Pullman Hotel in Sydney’s Hyde Park and Sydney pub The Fiddler.

If a buyer is not secured for all the machines and the contracts linked to them, one option being considered is taking just the warehoused machines to auction.

Affidavits lodged with the court by Mr Papas and Mr Tesoriero have revealed an empire of fast cars, houses and business interests spanning the globe. Their assets are the subject of freezing orders, although a handful – including a luxury yacht owned by Mr Tesoriero – are under orders to be sold.