Vincenzo Tesoriero given $1.25m to fund Westpac fight over alleged Forum Group fraud

Forum Group’s Vincenzo Tesoriero will fund his defence against Westpac with $1.25m after securing access to the funds in the Federal Court.

Vincenzo Tesoriero on his way out of court with his partner Sam Ashleigh. Picture: Chris Pavlich

A judge has cracked open the frozen finances of Forum Group founder and Bill Papas associate Vincenzo Tesoriero, allowing him access to $1.25m to fund his case with Westpac, which is pursuing him for $295m.

But Mr Tesoriero’s attempts to gain access to $200,000 to fund his lifestyle was quashed in the Federal Court, after a judge found the Forum figure had always had access to the money and ordered that banks release it.

Westpac claims Mr Tesoriero was a key figure behind an alleged scam in which he, Mr Papas and associates defrauded banks of almost $500m.

The men are set to face trial in October, but Mr Tesoriero brought the case back to courts in a bid to gain access to $1.86m to fund his case and living costs. Mr Tesoriero was seeking $1.6m to boost his legal slush fund, $200,000 to bankroll his lifestyle, and claims that he had no knowledge of the alleged scam.

Westpac opposed his application for funds, alleging Mr Tesoriero had money he could use to bankroll his defence as well as his lifestyle buried somewhere in a web of holding. The bank presented bank accounts, containing hundreds of thousands of dollars, which had not been declared by Mr Tesoriero.

Westpac also queried two high-performance cars which had not been revealed to the bank or liquidators despite their repeated attempts to get to grips with Mr Tesoriero’s assets.

Jeremy Giles SC, acting for Westpac, said Mr Tesoriero’s repeated failures to detail his bank accounts and property holdings left him to “ask absolutely blind questions”. The application was also opposed by Japanese bank Sumitomo Mitsui Banking Corporation, with Emma Beachy arguing Mr Tesoriero had created a “blur” of his true finances.

However, Paul Hayes QC, acting for Mr Tesoriero, said his client’s “raggedy disclosures” showed his best efforts to reveal his financial holdings.

Mr Hayes said his client’s documents showed 40-50 companies he held stakes in, as well as almost 20 properties.

“We see this constant jumping at shadows,” he said.

“There’s not a skerrick of evidence that says you shouldn’t accept his evidence.”

Federal Court judge Michael Lee questioned Mr Tesoriero’s disclosures of his assets to Westpac, which had challenged his requests for further funding, noting “staggering” discrepancies in values of properties and a web of bank accounts and trusts which had not been declared to the court. Justice Lee said the court’s efforts at “wading through the brim of a vast number of entities, discretionary trusts and numerous bank accounts is not a straightforward task” but the bulk of Mr Tesoriero’s assets were on display.

“Mr Tesoriero’s financial affairs could be fairly described as byzantine,” he said.

“I think on balance that there is unlikely to be a significant pool of sums upon which Mr Tesoriero can draw in order to access the funds necessary to conduct these legal proceedings.”