Westpac case against Bill Papas and Forum Group widens

Bill Papas’s Greek business partner is set to be served with legal documents as Westpac’s case against the Forum Group of companies takes aim at its Greek and UK assets.

Forum boss Bill Papas at Xanthi Arena in Greece last week.

Bill Papas’s Greek business partner is set to be served with legal documents as Westpac’s case against the Forum Group of companies takes aim at its Greek and UK assets.

The legal moves come after a Federal Court hearing on Wednesday that heard Mr Papas and fellow Forum figure Vincenzo Tesoriero had both lost their legal representatives.

Justice Michael Lee ordered Westpac be granted leave to take action against the Greek and British entities in a move that grows the case to 43 respondents.

The legal wrangling comes as banks jostle to recover funds from an alleged $400m fraud perpetrated through falsified loan documents and receivables contracts.

Westpac, which has led the charge to recover the $295m it says was allegedly defrauded by Mr Papas, moved on Wednesday against several more corporate entities in the Forum Group including the UK and Greek Iugis entities.

The Iugis offices in Greece and the UK were vacant when visited by The Australian in recent weeks.

Westpac alleges Iugis UK had received $6.2m, with $15.4m going to Iugis Holdings UK.

The bank alleges the funds were funnelled via the Forum Group of companies through the same means as the millions that are alleged to have enriched Mr Papas and Mr Tesoriero, funding the acquisition of Greek soccer team Xanthi FC.

Mr Papas reportedly paid about $15m for the Greek soccer club, which is headed by CEO Tasos Giamouridis, who Westpac alleges received at least $10.7m of the bank’s money.

Westpac will now move to formally serve Mr Giamouridis with a translated document which the bank expects to be served by November.

Mr Giamouridis and Mr Papas were pictured together on Sunday sitting at a Xanthi FC game on the weekend.

Westpac representative Jeremy Giles said the expansion of the case had only been possible after a close reading of Forum’s accounts.

“We have now joined what we think are all of the corporations, certainly all the ones we’ve been able to identify associated with Mr Papas and Mr Tesioriero,” he said.

Mr Papas, who arrived in Greece on June 21, is yet to return to Australia to face court action against him.

Justice Lee questioned the lengthy delay, after Mr Papas pledged to return to Australia on July 10.

“Is there any news as to when Mr Papas is going to return to Australia as he foreshadowed some time ago?” he asked.

Panetta Lawyers principal Rocco Panetta, who revealed to the court he intended to drop Mr Papas as a client, said Mr Papas had been unable to return to Australia due to a lack of funds and quarantine hotel capacity caps.

“My understanding, your honour, is he had to cancel his flight because of Covid and can’t afford to buy another ticket,” he said.

“There’s an issue on the number of people being allowed to enter Australia at the moment, and he hasn’t been able to book another flight.”

Mr Panetta told the court in an earlier hearing that Mr Papas’s partner Louise Agostino had booked his return flights.

Ms Agostino, who worked at Iguis, has since joined him in Greece.

“Those on my side are not holding any breath,” Mr Giles said.

Mr Panetta’s move to drop Mr Papas came hot on the heels of Fortis Law which had acted for Mr Tesoriero before dropping him in recent days.

Fortis Law is demanding Mr Tesoriero pay almost $300,000 in outstanding legal bills, something Justice Lee questioned as a “remarkable sum of money” given no defence had been filed.

“I can see from the reaction of Mr Giles he shares my surprise at the announcement of that quantum,” Justice Lee said

Madgwicks Lawyers partner Sazz Nasimi, who has taken over as Mr Tesoriero’s representative, said he only had a few documents related to the case.