Westpac hits a wall in extraditing Forum Group’s Bill Papas to face contempt of court charges

Bill Papas’ extradition from Greece has run into issues after Australian law enforcement agencies told Westpac they may also bring criminal charges against the alleged fraudster.

Forum Finance founder Bill Papas is entangled in a $400m fraud investigation by the NSW Financial Crimes squad.

A judge has expressed concerns Bill Papas’ extradition from Greece may fall in the “too hard basket” after several law enforcement agencies told Westpac they also could bring criminal charges against the alleged fraudster.

In a court hearing on Thursday, Federal Court Justice Michael Lee asked about Westpac’s pursuit of Mr Papas after he issued a warrant for his arrest for allegedly breaching freezing orders on his assets.

Jeremy Giles SC, appearing for Westpac, said the bank had served the arrest warrant on Mr Papas but there were issues with the bid for extradition because other law enforcement organisations wanted to bring charges against the Forum Group director.

If Mr Papas were extradited to Australia to face the contempt of court charge, extradition law prevents Australian law enforcement agencies from prosecuting him for separate crimes.

“[The warrant] remains utile to me but … a law enforcement public purpose would not want him extradited to face that charge but unable to charge him on the other matters,” said Mr Giles.

The bank is chasing Mr Papas after alleging he breached freezing orders imposed as part of its bid to claw back hundreds of millions it alleges he defrauded as part of rorted equipment leases.

The claim is part of $400m being sought by three banks, including Westpac, from Forum amid allegations of fraud.

The Federal Court made an order for Mr Papas’ arrest after finding him in contempt, after allegedly breaching freezing orders on his assets imposed by Westpac.

In September, the NSW Financial Crimes Squad started a formal investigation into Forum Finance and Mr Papas after referral from the NSW Police.

Justice Lee said on Thursday he issued the arrest warrant because Westpac had the view it could extradite Mr Papas to Australia.

“If Westpac is not going to pursue [Mr Papas] for contempt then it is suitable for the registrar to do so,” said Justice Lee.

“It is unsatisfactory for the court to issue proceedings of that character and then for it to simply go into a too hard basket somewhere.”

The judge ordered Westpac’s lawyers to give more information on the issues it had extraditing Mr Papas and said he would consider if the court registrar could bring the contempt charges against the Forum group director.

Justice Lee also questioned Mr Papas’ public statement earlier this week that he was “deprived of the opportunity to fund any meaningful engagement” with the Federal Court proceedings.

“I noted [the statement] with some degree of amusement,” said Justice Lee.

“He was represented at all material times when finding were made which affected Mr Papas … [which] Mr Papas through his representatives, did not seek to challenge.”

Also on Thursday, Mr Giles asked Justice Lee for an order allowing Forum Group liquidators to sell two of Mr Papas’ boats, located on Sydney Harbour or the Hawkesbury River.

The boats are registered in Mr Papas’ name so the liquidators did not have the right to sell them, said Mr Giles.

Mr Giles asked Justice Lee for an order to sell the boats because they are “wasting assets at the end of the day”.

But Justice Lee said he would not make an order for the boats’ sale until he had decided at least part of the case against Mr Papas.

The court also heard Ms Agostino would come to Australia for the October trial and will defend the action by Westpac which alleges she conspired to defraud the bank.

The trial is set down for three weeks beginning on October 10.