Westpac takes aim at new figures connected to Forum scandal, detailing extent of alleged New Zealand fraud

Fraud allegations of almost $400m against Forum Finance boss Bill Papas have widened to include his business partner in Greece and transactions in New Zealand.

New details of the case brought by Westpac Banking Corporation allege Anastasios Giamouridis also benefited from fraudulent transactions involving a string of businesses headed and owned by Bill Papas.

Fraud allegations of almost $400m against Forum Finance boss Bill Papas have widened to include his business partner in Greece and dozens of transactions in New Zealand, worth more than $40m.

New details of the case brought by Westpac Banking Corporation allege Anastasios Giamouridis also benefited from fraudulent transactions involving a string of businesses headed and owned by Mr Papas, including Forum and food waste digester firm Iugus.

The bank has been pursuing Mr Papas and Vincenzo Tesoriero in the Federal Court alleging the two used their position at Forum to defraud Westpac of almost $300m through hundreds of illegitimate loan transactions.

In a new statement of claims lodged by Westpac in the Federal Court on Wednesday, the bank alleges Mr Giamouridis received about $10.7m across 20 transactions between June 2019 and December 2020 from a Forum entity, Forum Group Financial Services, that he was not entitled to.

Westpac alleges in court documents that Mr Papas’ Greek business partner Mr Giamouridis holds a stake in an investment vehicle which benefited in millions of dollars of the bank’s money.

The Australian last week revealed that Westpac was considering expanding its alleged fraud actions against Forum Finance and its directors, to capture others involved in running and overseeing the broader group of entities.

The bank is conducting detailed funds tracking and tracing work and was scoping out whether others could be added as defendants to the domestic Federal Court action.

Westpac alleged Mr Papas, Mr Giamouridis and the duo’s Greek domiciled business Mazcon Investments Hellas IKE, as well as Melbourne-based Mr Tesoriero, received funds from Forum companies funnelled to them and various entities in their ownership using payments from Westpac that had been earmarked for the financing of food waste digester machines via the creation of fraudulent documents.

Mr Papas and Mr Giamouridis own 99 per cent and 1 per cent respectively of Mazcon, which is the investment vehicle that is the majority owner of Greek second division soccer club Xanthi and several properties.

Mazcon invested 15m euros into Xanthi when it took control of the club last November. Mr Giamouridis is understood to have been chief executive of the soccer club, which failed to win promotion to the top Greek Super League earlier this year.

Westpac allege that Mazcon fraudulently obtained almost $16.5m from the bank, and that Mr Papas directly or indirectly through his involvement in the fraudulent scheme received at least $40.2m, excluding funds used to acquire boats, cars, and other property.

“Mr Giamouridis and 286 Carlisle Street were receiving substantial payments from FGFS (Forum Group Financial Services) to which he and they had no legitimate basis to receive,“ Westpac‘s revised statement of claim said.

Forum Finance director Bill Papas.

Mr Papas has previously stated he sold his shares in Mazcon Investments Hellas IKE “in or about March 2021”, a transaction Westpac alleges is doubtful.

Wednesday’s filing marks a move to combine the New Zealand and Australian matters into one case, the bank alleging it was defrauded at least $40.22m in losses.

The bank alleges the fraud was perpetrated by means of an arrangement between Iugis (NZ) via a contract for the purchase of equipment between the company and Veolia Environmental Services.

Westpac alleges that fraud took place between September 2018, with the last allegedly fraudulent payment made on June 9, just days before Mr Papas missed a meeting in WA to explain inconsistencies identified in WesTrac’s loan balance.

An almost $10m discrepancy between WesTrac’s loan account first alerted Westpac to the potential fraud.

Mr Papas was due to meet WesTrac in Perth on June 15, but missed the meeting with company staff reportedly told due to a medical emergency.

In an affidavit, Mr Papas said he arrived in Greece on or around June 21, before his Sydney house was searched and his electronic devices seized.

Mr Papas has not yet filed a defence to Westpac’s allegations, nor has he detailed plans to return to Australia to face the matter.

He had earlier told the Federal Court he planned to return to Australia on July 10, however he reportedly tested positive to Covid-19 on July 8, scuppering any prospective plans.

Mr Papas has since been joined in Greece by his partner Louise Agostino, who the court heard had booked his return flights.

Ms Agostino held a role as International Operations & Business Development at Iugis.

Ms Agostino did not respond to request for comment, while her parents declined to comment.

Another company owned by Mr Papas, Palante Pty Ltd, was also added as a respondent to the Westpac action. Westpac allege Palante received $2.6m from the fraudulent scheme.

Palante was started in 2009 and previously listed Mr Papas’ ex wife Jenny Polixeni Papadimitriou as its director and secretary.

However, in April 2018 Mr Papas assumed both roles.

Mr Papas’ ex-wife is a client of Rothsay.

Rothsay audited Forum Group and provided personal tax services to Mr Papas, however it has since cut ties after the alleged fraud was made public.

Westpac has alleged the fraudulent conduct perpetrated by Mr Papas started around September 2018.

Mr Papas’s executive assistant Eloise Orlandini is also named in court action against Forum and her boss, with French bank Societe Generale alleging she may have knowingly submitted fraudulent documents.

Ms Orlandini is not a respondent in the Societe Generale case against Forum, but is named in the bank’s statement of claim.

Societe Generale’s statement of claim outlined allegations of deceit and false signatures and puts the bank’s outstanding balance or contract loss at $10.3m in the civil Federal Court case.

Mr Tesoriero was targeted in Westpac’s amended originating application, with the bank now seeking he pay “damages pursuant to section 236 of the Australian Consumer Law” and “pay damages pursuant to section 12GF of the ASIC Act, further or alternatively pursuant to section 1041I of the Corporations Act.”

Westpac alleges Mr Tesoriero reaped at least $28.47m “through his involvement in the Scheme”, however noting that this sum “excludes funds fraudulently obtained and used to acquire other property such as boats and cars”.

Mr Tesoriero’s affidavit of his assets reveals a list of fast cars and property to his name.

The Forum director has also been shown to own four cars and two motorbikes valued at a total of $405,000.

This includes Mr Tesoriero’s $150,000 2018 Porsche Cayenne and a $100,000 Chevrolet 1957 Bel Air.