Forum Finance boss Bill Papas withdraws soccer team from Greek league, as Westpac continues pursuit

Alleged Forum Finance fraudster Bill Papas has dramatically pulled his football team from Greek sporting leagues, after financial and cash flow issues.

Alleged Forum Finance fraudster and former Sydney Olympic president Bill Papas has dramatically pulled his football team from Greek sporting leagues, after financial and cash flow issues left it unable to compete.

In a statement to fans, signed off by Mr Papas and the Xanthi FC board – which includes his partner and alleged party to the bank fraud Louise Agostino – organisers confirmed the team would withdraw from the Greek Super League 2 competition.

In a statement, Xanthi FC said the team had been pulled from the draw due to financial troubles, with Mr Papas unable to sell the team or “finding alternative financing solutions” for more than nine months.

“After two years of great financial contribution to the team and to the city, we have not been able to find a solution in time to continue our plans,” Xanthi said.

“The owner of (Xanthi) undertakes to personally communicate with each employee to undertake the payment of their financial claims in the best possible way.”

This comes despite efforts by Mr Papas to secure financial backing for his team from local government. 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 didn’t exist.

Bill Papas at Xanthi Arena in Greece last year.

A Federal Court hearing over those matters is likely to occur in February 2023 after a series of delays and the appointment of a new presiding judge. Mr Papas left Australia for Greece when questions about customer invoices started to be asked in mid-2021, and has since been joined there by Ms Agostino.

Mr Papas has failed to submit a detailed reply to Westpac’s claims and despite indicating early in the case he would return to Australia, he remains in Greece. Mr Papas’ only legal intervention since dumping his legal representation was hiring defamation lawyer Rebekah Giles. She issued a statement to a media outlet noting the businessman did intend to address the matters alleged by Westpac, but that Mr Papas had not had an opportunity to resource his case.

When contacted by The Australian, Ms Giles would neither confirm or deny whether she continued to represent Mr Papas.

His bank accounts and assets – including his shares in Xanthi – have been frozen by the courts and can’t be accessed. He was, though, granted funds by the Federal Court to pay for his defence.

Ms Agostino has not responded to Westpac’s allegations, but her lawyers indicated in March she would return to Australia to fight the claims. However, Ms Agostino has since dumped her lawyers and remains in Greece.

Xanthi has in recent days told fans Mr Papas had met Xanthi Abdera municipality mayor Tsitiridis Giorios on September 9 “to find a solution” for the football club.

Greek media reported Mr Papas had been struggling to keep the lights on at his football stadium and the club’s issues have also prompted a string of exits from Xanthi FC in recent months, with some players traded or let go.

The Australian revealed in February Mr Papas had been blocked by Greek football authorities from seeking to raise €4.72m ($7.52m) through the issuance of new shares in Xanthi FC, diluting his stake in the club.

Mr Papas purchased Xanthi FC in 2020 for $15m, allegedly using money gleaned from the claimed Westpac fraud.

The Federal Court has heard claims he funnelled at least €1.9m to the team via spurious business investments, from funds he allegedly defrauded from the banks.

Westpac is continuing to seek to claw back funds from a number of entities linked to Mr Papas, including having served a pleading on Greek tea promoting company Theion Ike, in accordance with Hague conventions.

Earlier documents in the case against Mr Papas showed Theion Ike was extended a €420,000 loan to acquire shares in a company in Greece.

Bill Papas’ Rozelle residence in Sydney.

Westpac alleges Theion Ike received at least $655,000 from Forum Group Financial Services or 286 Carlisle Street, the latter being a company that Mr Papas’ business associate Vincenzo Tesoriero and his father are directors of.

The bank claims at least some of this money was paid for the benefit of Mr Papas and that Theion Ike is accountable to repay funds to Westpac or provide compensation.

Separately, other documents lodged with the court reveal the quantum of cash burn by Mr Tesoriero, who is defending allegations by Westpac that he is linked to the fraudulent activity.

The court filings show Mr Tesoriero has just $70,663.72 of funds remaining, of the $1.25m permitted for him to access for legal expenses. His bank accounts and assets have also been frozen while the court action plays out.

In court earlier this month, Mr Tesoriero’s new barrister flagged his client was likely to make an application for more funds to be made available to pay for his case.

“The parties’ solicitors are currently corresponding regarding this issue, in an attempt to avoid the need for a further application,” the documents said.
“However, in the event that the issue cannot be resolved by consent, the Tesoriero respondents intend to apply for a further variation of the freezing orders.”

That matter is slated to be heard next month.

Originally published as Forum Finance boss Bill Papas withdraws soccer team from Greek league, as Westpac continues pursuit