Forum co-accused has companies put into liquidation

Nine companies associated with Vince Tesoriero, an alleged co-conspirator of a major fraud against Westpac, have been placed in the control of McGrathNicol.

Vince Tesorario exiting court earlier this year. Picture: Chris Pavlich

A suite of companies owned by Vince Tesoriero – an alleged co-conspirator in Forum Finance’s fraud against Westpac – has been placed in liquidation.

Nine companies including Tesoriero Investment Group, Canner Investments, and seven others named after street addresses were placed under the control of McGrathNicol chairman Jason Preston on Thursday.

It is unclear what assets the companies own or the quantum of debt which might be associated with them. Mr Preston was contacted for comment.

Mr Tesoriero is currently preparing to defend himself in the Federal Court, with the matter most recently heard in October. At that time Federal Court judge Tom Thawley dismissed several applications by Mr Tesoriero, including a request for $3.8m to be freed up to fund his defence.

Justice Thawley said he would not allow $616,282 in proceeds from the sale of luxury yacht XOXO be used to help fund Mr Tesoriero’s case, given the entities that owned it were in liquidation. He also ruled that properties entangled in the case – or proceeds from their sale – were not to be used by Mr Tesoriero’s camp, as that would lead to “further depleting” of assets that were the subject of proprietary claims.

Westpac and two other banks are separately pursuing Mr Papas in the Federal Court for about $400m over claims he used Forum to issue false and fraudulent equipment finance invoices. Those invoices were allegedly issued for equipment that often did not exist.

Westpac alleges Mr Tesoriero was involved in coming up with the fraudulent scheme. But he disputes the allegations, previously telling the court he did not become aware of the claimed fraudulent conduct by Mr Papas until court action was started by Westpac last year.

Justice Thawley also in early October dismissed an application by Mr Tesoriero and his father, who is also a respondent in the case, to have parts of Westpac’s case struck out.

Mr Tesoriero’s case is scheduled to begin in February and run for about three weeks. That follows a delay which saw judge Michael Lee recuse himself from the matter due to a complaint by Mr Tesoriero arguing Justice Lee had a biased opinion of his case.

Mr Papas is residing in Greece and has not engaged in the case for about a year.