Our Kloud chief claims Audi seizure wrong, no knowledge of freezing orders

The head of Our Kloud, and cousin to Forum figure Bill Papas, has filed his defence to Westpac’s attempt to force him to hand over $720,000.

An Audi said to have been owned by Our Kloud CEO Eric Constantinidis. Liquidators of Forum have seized and sold racing Audis.

Eric Constantinidis, cousin of Forum Group founder Bill Papas, is demanding the return of money from his racing Audi and denied attempts by Westpac to seize $720,000 it says was transferred in breach of freezing orders.

In his defence filed with the Federal Court, Mr Constantinidis took aim at a barrage of claims made against him by Westpac, which alleges he was sent funds misappropriated from the bank via a complex fraud allegedly perpetrated by Mr Papas.

Westpac alleges it was defrauded of almost $300m via lease contracts that saw funds lent against non-existent office and industrial equipment.

As part of its efforts to return the funds to the bank, Westpac took aim at Mr Constantinidis in October, naming him in court documents. Mr Constantinidis is the owner of Sydney data management company Our Kloud and the buyer of the Forum Group’s printer rental business from administrators.

Westpac alleges Mr Papas’ transferred funds from his Macrovue share trading account, held in the name of a company called Palante, to his bank accounts as well as those held by Mr Constantinidis.

Mr Papas controlled Palante and allegedly made the transfers in Greece, after Westpac imposed freezing orders on his assets.

Westpac claims $720,000 of the $750,000 withdrawn from the Macrovue account were sent to Mr Constantinidis. The two transfers of $150,000 on July 4 and $570,000 on July 7 came after freezing orders were made against Mr Papas on June 28.

In his defence against the claim Mr Constantinidis said Mr Papas owed him $1.265m and that when he received funds from his cousin he was “at all times …. unaware of the freezing orders against Mr Papas, or any of the allegations in these proceedings”.

However, court documents show Westpac had attempted to contact Our Kloud as part of its investigation of Forum on June 30, and again on July 1, 2, 5, and 6 before the Federal Court ordered Mr Constantinidis’ company to hand over Forum’s documents on July 7.

Mr Constantinidis also claims moves by liquidators of Forum, who seized and sold racing Audis, were wrong.

His defence said he “does not admit that he has asserted that two Audi race cars belong to him” but asserts that the cars were “belong to BECM Holdings”, a company which Mr Constantinidis controls and which is not party to the liquidation proceedings.