Forum Finance court trial delayed to 2023, but Bill Papas’ Greek associate makes an appearance

The Federal Court has indicated it won’t hear Westpac’s case against alleged fraudsters Bill Papas and Vincenzo Tesoriero until at least early 2023 after Justice Michael Lee recused himself from the case.

Bill Papas – who is the alleged mastermind behind a fraud against Westpac and two other banks – remains in Greece.

Westpac’s case against alleged fraudsters Bill Papas and Vincenzo Tesoriero won’t be heard until at least early 2023, but the one-time Greek business partner of Mr Papas looks set to participate after a late intervention.

Presiding over the case for the first time in the Federal Court on Friday, Justice Tom Thawley revealed the recent change of judge meant a hearing for the marathon case, launched by Westpac, would likely be delayed until at least February.

Westpac is pursuing the former Forum Finance figures and entities in the action over an alleged $300m fraud, involving claims of false and forged invoices.

Justice Thawley said given issues with finding a judge available for three weeks at this stage in the year, the hearing would most likely occur in February.

“I will have discussions in the meantime with people that I need to, to see if I can get a date in February. But can I ask the parties to … assume for the moment that I’m successful in doing that and seek to agree a timetable for what steps need to be done in order for a hearing beginning say February 6, or thereabouts,” he added.

The change of judge comes after Mr Tesoriero succeeded in having Justice Michael Lee recuse himself from hearing the case, which he had been set to preside over in October, arguing the judge had developed a biased opinion of the Melbourne businessman.

Justice Lee took issue with Mr Tesoriero, noting he found him “inconsistent” in giving evidence in a legal manoeuvre aimed at unlocking more money to fund his case against Westpac.

Justice Lee handed Mr Tesoriero a further $1.25m to fund his case against Westpac, but warned he did not want to see the Melbourne man returning to the court to again top-up his legal fund.

However, on Friday, Mr Tesoriero’s barrister Anthony McInerney flagged an application before Justice Thawley to again increase his client’s legal budget, with a hearing on that matter set for October 10.

Justice Thawley told Mr McInerney it was “somewhat unbelievable” Mr Tesoriero was now on his third set of lawyers in the case.

Westpac accuses Mr Tesoriero and Mr Papas of being behind a scheme that siphoned money from the bank through false lease loan contracts and is seeking to claw back about $300m.

French bank Societe Generale and Japanese lender Sumitomo Mitsui Banking Corporation are separately pursuing Mr Papas and Forum, demanding a further $100m from him and Mr Tesoriero, who they claim was a recipient of funds.

Mr Tesoriero denies the claims, while Mr Papas has failed to participate in the case since he dumped his lawyers in September 2021.

Mr Papas has failed to submit a 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 interventions since dumping his lawyers was hiring defamation lawyer Rebekah Giles to issue a statement noting the businessman had not had an opportunity to resource his case, a move which Justice Lee noted “with some degree of bemusement”.

Westpac has also accused a raft of other business associates of Mr Papas of being complicit in the alleged fraud, including his partner and former employee Louise Agostino.

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.

Jeremy Giles SC, appearing for Westpac, noted many of them had failed to participate in the case or had flouted attempts to have them appear.

Mr Giles stressed the bank wanted the hearing to occur as soon as practicable.

“The broader public interest of, if I’m right about the underlying facts, this is a very serious incident. Very bad conduct and I can say that because at least with Mr Papas, he’s not resisting it,” he said.

Notable new arrivals to the Forum matter on Friday were representatives of Anastasios Giamouridis, Mr Papas’ one-time Greek business associate and former fellow football director.

Mr Giamouridis is alleged to have received funds from the claimed Forum fraud, with the money sent to Greece to fund the manufacture of waste digester machines for Mr Papas’ former Iugis business.

Mr Papas and Mr Giamouridis had entered into a business partnership to manufacture the machines.

Mr Giamouridis was placed on the board of Mr Papas’ Greek football team Xanthi FC, which was allegedly bought using funds from the fraud, but he resigned from the position in February this year.

Mr Giamouridis has not responded to Westpac’s allegations.

Mr Papas has appointed Ms Agostino to the Xanthi club’s board.

Barrister Gayanie Walton, appearing for Mr Giamouridis, told the court she hoped the matter against him could be carved out from the larger case against Mr Papas, noting any potential trial in February may be too soon given her late appointment just this week.

Lawyers also appeared for Mr Papas’ cousin Eric Constantinidis, who allegedly received almost $720,000 of fraudulent funds from Mr Papas.

Mr Constantinidis claims the funds were a repayment of loans to Mr Papas.

Mr Giles flagged there was discussion underway with Mr Constantinidis’ lawyers over the funds, noting a settlement was one option being considered versus resuming the legal action.

Originally published as Forum Finance court trial delayed to 2023, but Bill Papas’ Greek associate makes an appearance