In a landmark decision, the Federal Court has found four key figures associated with the former Sydney-based equipment financing company, Forum Group, guilty of orchestrating Australia’s largest-ever bank fraud, amounting to over $500 million in fake leases.

The court ruling, delivered on Friday, identified Forum Group’s former CEO, Bill Papas, as the mastermind behind the elaborate fraud. Papas, along with his business partner Vincenzo Tesoriero, engineered a scheme that involved falsified equipment leases to secure millions in loans from three major banks. These funds were then used to support their lavish lifestyles and fund multiple property purchases.

Justice Elizabeth Cheeseman declared Papas the principal architect of the fraud, The Australian reported.

While it was unclear if Tesoriero played a direct role in designing the scheme, the court determined he knowingly benefited from the ill-gotten funds. Papas’s girlfriend, Louise Agostino, was also implicated for assisting in the scheme and enjoying the spoils, which included luxury trips and substantial financial gains.

Another key participant was Forum Group’s former financial controller, Tony Bouchahine. His role was deemed critical in managing the complex cash flow from company accounts, which ultimately fueled the luxurious lifestyles of Papas and Tesoriero.

The court’s decision paves the way for further action by the NSW Fraud Squad, which has been investigating the Forum fraud case for over three years. An international arrest warrant remains active for Papas, who fled to Greece in 2021 and has not returned to Australia to face the charges. Reports indicate that Papas continues to live in Greece, with recent sightings placing him in the upscale Athenian suburb of Glyfada.

The massive fraud came to light through a chance discovery by WesTrac, which raised concerns over a $1.6 million printer lease that didn’t match Westpac’s $12 million credit facility. This discrepancy revealed a nationwide fraud that implicated some of Australia’s biggest businesses, including Coles, Woolworths, and legal firm HWL Ebsworth, all of whom were deceived by thousands of forged signatures from Papas.

The fallout has extended beyond Westpac, with international banks such as Sumitomo Mitsui Banking Corporation and Société Générale also suffering significant financial losses due to the fraudulent leases. Collectively, the trio of banks is unlikely to recover much of the $400 million owed, with estimates suggesting that only $50 million may be repatriated.endend