Westpac drops charges against Bill Papas’ partner in Forum fraud case

The bank told the Federal Court it would cease pursuing Greek businessman Anastasios Giamouridis over claims he owed it $12.6m.

Bill Papas at Xanthi Arena in Greece in 2021.

Westpac has dropped its case against the Greek business partner of alleged Forum Finance fraudster Bill Papas, in a move that further slims down the bank’s case.

The Federal Court heard on Friday the bank would cease the matter against Anastasios Giamouridis, who Westpac claimed owed it $12.6m.

The long running case had taken aim at Mr Giamouridis over his partnership with Mr Papas, running a business manufacturing waste digester machines for the Forum figure’s waste business Iugis.

Westpac had also claimed Mr Giamouridis benefited from an alleged $453m fraud over his role in a Greek company called Mazcon, which Mr Papas used to buy Xanthi FC, a Superleague 2 football club in Thrace, in a $15m deal.

Mr Giamouridis served as chief executive of Xanthi FC, before resigning from the football club in February 2022.

Justice Elizabeth Cheeseman heard Westpac would drop its case against Mr Giamouridis, who only moved to address the bank’s claims in September last year, with no findings he was party to the alleged fraud nor any funds being handed over.

The deal comes as Mr Giamouridis was preparing to fly out to Australia to contest Westpac’s claims.

Mr Giamouridis responded to Westpac’s claims in January, claiming he had no knowledge of, nor participated in, an alleged scheme to defraud the bank.

Westpac had claimed Mr Giamouridis should pay back $12.6m, but the Greek businessman claimed he had acted “bona fide” and provided Mr Papas’ company “valuable consideration for the payments” and had no knowledge the funds were fraudulent.

GA Lawyers solicitor George Anton, acting for Mr Giamouridis, who is still in Greece, said his client was “pleased and relieved” the matter had been dismissed.

“Mr Giamouridis has been completely vindicated,” Mr Anton said.

But Mr Giamouridis may still find himself embroiled in the case with Westpac targeting two corporate entities he holds an interest in.

Westpac is targeting Mazcon, which Mr Papas has placed into liquidation with himself appointed company liquidator.

Mazcon was used to purchase several properties in Greece as well as the Xanthi FC stadium when Mr Papas bought the team.

The Iugis Hellas business, which Mr Giamouridis had an interest in, is also being targeted.

If Justice Cheeseman makes findings against either company Westpac may seek to make claims against their assets.

The move by Westpac to drop the case against Mr Giamouridis comes as the third time the bank has dropped its pursuit of parties embroiled in the Forum Fiance case in a bid to tie up loose ends.

Westpac agreed to settle with the father of Forum Finance figure Vince Tesoriero on Tuesday after the two sides reached a confidential settlement.

The bank secured orders putting a potential hearing against Giovani Tesoriero in September, pending the settlement of the claims against him.

Westpac alleges companies controlled by Giovani Tesoriero benefited from funds obtained from the alleged Forum Finance fraud via his son.

Westpac has also dropped the case against Mr Papas’ cousin Eric Constantinidis in December after he paid the bank a confidential settlement.

The bank had claimed Mr Constantinidis, who bought the Forum Group from administrators, had received $720,000 from Mr Papas in breach of freezing orders.

Mr Constantinidis had claimed the funds were a repayment of loans to his cousin and refused to hand it back.