Forum Group figure Vincenzo Tesoriero’s bid for $1.8m in legal funds delayed after disclosure failure

Vincenzo Tesoriero’s bid to get $1.8m in legal funding has been complicated after Westpac revealed he failed to accurately disclose assets, despite repeated attempts by the bank and liquidators.

A Forum Group partner linked to founder Bill Papas, pictured in Thessaloniki, Greece, has been told to clarify his asset position to court.

A bid by Forum figure Vincenzo Tesoriero to add an extra $1.8m to his legal fund in his battle with Westpac has been delayed after the bank revealed his failure to properly disclose assets and finances.

Mr Tesoriero, one of the key figures alongside business partner and Forum Group founder Bill Papas, in the alleged $500m fraud perpetrated on Westpac, Societe Generale, and Sumitomo Mitsui Banking Corporation, had his assets frozen by the Federal Court last year.

This came after Westpac revealed the alleged fraud, which had seen the Forum Group take out loans to cover lease contracts that it claims never existed.

Mr Tesoriero says he had no knowledge of the alleged fraud, but argues he needs the court to give him access to more of his finances to fund his defence.

Paul Hayes QC, appearing for Mr Tesoriero, said his client had already spent at least $780,000 on his legal fees defending himself.

Mr Hayes said Mr Tesoriero had been “relying upon the grace and goodwill of friends and family to sustain him”.

Mr Hayes said Mr Tesoriero needed to take his legal spending limit to $1.8m, however this was opposed by Westpac, which argued for a slimmer sum.

Justice Michael Lee proposed $1.25m instead, however Mr Hayes said $1.35m would be more appropriate.

But before Justice Lee made his orders, Westpac presented allegations to the court that Mr Tesoriero’s attempts to cry poor were complicated by his failure to properly disclose his assets.

Jeremy Giles SC, acting for Westpac, alleged Mr Tesoriero was actually still receiving funds from one of the many petrol stations he owns.

Westpac has previously claimed Mr Tesoriero assembled a sprawling property empire funded by the alleged fraud.

An affidavit of Mr Tesoriero’s assets reveals he held property assets worth $60.7m across 31 holdings.

“This was not disclosed in the affidavit material,” Mr Giles said.

Justice Lee said he would hold over any orders until Mr Tesoriero clarified his assets.

“If I‘m going to make an order releasing legal funds, I want complete transparency and an understanding of precisely what is the asset position of Mr Tesoriero,” he said.

“The discrepancies in those two affidavits at the moment are a concern to me.”