Bill Papas’s friend, Our Kloud owner Eric Constantinidis, swoops on Forum

A car racing buddy and possible relative of Forum Group boss Bill Papas has acquired the collapsed entity, as Westpac pursues a damning fraud action.

The Audi racing car belonging to Our Kloud owner and CEO Eric Constantinidis.

A car racing buddy and possible relative of Forum Group boss Bill Papas has acquired the collapsed entity, as Westpac pursues a damning fraud action relating to 100 transactions across a broader set of entities.

Our Kloud, which also held Forum Group’s data on its servers, was revealed as the buyer by The Australian, after it tech company beat another interested bidder understood to be a venture capital player.

Forum and a string of related entities are embroiled in an alleged $400m fraud by Westpac, and two other banks.

Westpac is also asking the Federal Court to fine or imprison Vincenzo Tesoriero after the Forum Finance director failed to submit an affidavit of his assets.

Mr Tesoriero’s affidavit is believed to have been circulated to some parties but not yet formally read before the court.

The Forum Group sale sealed on Thursday morning will see some 72 staff and the eases for items such as printers and photocopiers included in the acquisition.

Under the terms of the deal employees retain their entitlements to the total value $1.6m.

Our Kloud owner and CEO Eric Constantinidis said: “The acquisition of Forum Group provided an amazing opportunity for the expansion of Our Kloud’s footprint in the Australian managed technology space and the solutions we have to offer our clients.

“I’m pleased that we’ve been able to bring on board over 70 Forum Group employees, adding their talent and expertise to our growing team. We’re looking forward to this next chapter in Our Kloud’s journey.”

Mr Constantinidis has a longstanding relationship with Mr Papas, racing his Our Kloud branded R8 LMS EVO alongside Mr Papas on multiple occasions. Mr Constantinidis is not accused of any wrongdoing.

Mr Constantinidis, who is believed to be related to Mr Papas, acted as director of Forum Group of companies between July and August 2011 just as the company got started.

He founded Our Kloud in 2015.

Westpac recently paid Our Kloud $8700 to access Forum’s records.

Speaking in court recently Westpac’s barrister Jeremy Giles had noted “a lack of engagement” by Our Kloud in accessing Forum’s record

He told the court the bank had “a slight concern that a director and shareholder of the company appears to be Mr Papas’ cousin”.

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

A property in Caulfield North, Melbourne, belonging to Vincenzo Tesoriero. Picture: Aaron Francis

The sale came as the Federal Court knocked back attempts by Westpac to fine or imprison Mr Tesoriero after the Forum Finance director failed to submit an affidavit of his assets.

Judge Michael Lee is overseeing the case management hearing relating to the separate legal action by Westpac, Societe Generale and SMBC Leasing and Finance.

The court on Thursday heard Mr Papas has been unable to detail his assets and return plans from Greece due to technology issues, after leaving Covid-19 isolation because he had tested positive to the virus.

Mr Papas’ barrister Jim Johnson said the one-time leasing financier had “limited ability to access larger documents”, which had complicated his attempts to swear an affidavit.

“It has been suggested he obtain a computer with drop-box facilities,” he said.

“At present it can only really be done by telephone.”

Mr Johnson also said the task had been complicated by a difficulty in retrieving financial information from Forum Group’s auditors Rothsay.

Rothsay, which also did Mr Papas’ personal tax return, is reported to have placed a “lean over everything” and said that it would not hand over documents “unless we pay money”.

However, Justice Lee took aim at Mr Papas, saying “it is reaching a stage of being entirely unsatisfactory” that he had failed to comply with his orders.

Justice Lee had ordered Mr Tesoriero to disclose in writing all his “assets in Australia, and their value, location and details (including any mortgages, charges or other encumbrances to which they are subject) and the extent of his interest in the assets”.

This comes just days after the bank succeeded in having the court order that Mr Tesoriero give the bank 24 hours notice if he wished to leave the country.

The application to the Federal Court also comes as Westpac filed a 297-page statement of claim to the court detailing its serious allegations of fraud and forgery against Forum Finance, Mr Papas and Mr Tesoriero.

Forum Finance director Bill Papas.

In legal cases in Australia and New Zealand – with the separate proceedings across the Tasman – the bank says its exposure to Forum Finance is about $294m.

Westpac alleges the “dishonest and fraudulent” scheme embarked on by the two men was for their own benefit, including buying property and businesses in Australia and overseas and acquiring goods including racing cars, boats, jewellery and 94.38 per cent of Greek soccer team Xanthi FC.

Documents show that as recently as June 9, Westpac claims Mr Papas “forged or caused to be forged purported signatures of officers of Veolia”.

The bank provided details of 100 transactions it alleges involved forgery and fraud.

“On a date not known to Westpac but by no later than 31 August 2018 or, alternatively, 13 September 2018, Mr Papas and either together with Mr Tesoriero or alone devised a scheme involving Forum Finance and persons or entities related to one or both of them … to obtain money dishonestly and fraudulently from Westpac that they were not entitled to receive through the Eqwe/Forum Programme or at all,” the documents said.

“The funds would then be used by or dispersed to Mr Papas, Mr Tesoriero or other entities or persons related to one or both of them, including the jointly owned entities; the Tesoriero Entities, Mazcon and 286 Carlisle Street.”

Westpac allege Mr Papas and Mr Tesoriero accumulated about $50m worth of property assets with funds funnelled via Forum entities. The properties range from residential houses in Sydney to commercial and warehouse and industrial holdings across Melbourne, adjoining luxury houses on the NSW Central Coast, as well as an office block in Brisbane and petrol stations in regional Victoria.

About $30m worth of properties were purchased in 2020 alone, the last two being a waterside home on the Central Coast for $9.5m and a $900,000 petrol station in Ouyen Victoria bought in the week before Christmas.

Mr Papas has filed an affidavit with the court but the document has not been made available.