Forum Finance boss Basile Papadimitriou, known as Bill Papas, will return to Australia from Greece on Saturday to confront allegations of fraud.
Westpac took legal action against Mr Papas, and Societe Generale has launched a separate court action relating to allegations of fraud against his company, Forum Finance, of amounts worth $294 million and $9 million respectively.
On Wednesday, a Federal Court hearing took place.
Rocco Panetta, Mr Papas’ lawyer, said he had communicated with his client on several occasions and Mr Papas did not disclose his exact location, however there were numerous press reports that said that Mr Papas had on 25 May stated the intention to travel to Greece to watch his club Xanthi FC play.
“I understand he’s in Greece. I don’t understand which country he is in to make his way back here,” he said, adding that his client had committed to return to Australia. He cited a screenshot received of a japan Airways flight he had booked to return from Athens to Australia via Dubai, and would do so on Saturday.
“He’s made a decision to attend to these serious allegations against him personally and to the company. He told us he’d come back.”
Mr Panetta was unable to get proper instructions or prepare an affidavit for his client due to internet connection problems. He said his firm had started preparing one, however.
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“We are taking advice on whether it may, or may not, tend to incriminate him and whether we need to seek, or avail ourselves of section or paragraph 9A of the orders,” he said.
Mr Papas last week resigned as the president of Sydney Olympic Football Club and last year bought Greek soccer team Xanthi FC.
There was concern surrounding his whereabouts when he failed to attend a meeting in Perth in mid-June to address concerns about discrepancies with a Forum client’s account.
Mr Papas and Forum’s legal representation were on Wednesday seeking a delay of the appointment of a provisional liquidator, and argued that Westpac had protections in place via asset freezing orders.
“The status quo is obviously, at the moment, comprehensively preserved by the extensive freezing orders,” barrister Andrew Martin, the representative for Forum, said.
“There are obviously some very serious allegations, if not perhaps the most serious of allegations, made in these proceedings against the first respondent at least. The adjournment I seek is only for a sufficient period to enable a statement of claim and defence to be put on.”
Justice Michael Lee pointed out that mr Papas had already missed several court deadlines and pointed out that he could engage with the court electronically if he wished, and he refused to adjourn Friday’s hearing. He said that mr Papas “refuses to tell even his solicitor his location”.
“At the moment, the prospect of Mr Papas giving any relevant evidence is entirely speculative, but those representing him can rest assured that I will facilitate any steps that are proposed to be taken to allow Mr Papas to apprise the court of any matters that he considers relevant.
“In circumstances where it is necessary that these implications will be dealt with very quickly, I’m not satisfied the appropriate exercise at my discretion is to adjourn the hearing on Friday and it should proceed.”
Westpac counsel Jeremy Giles, SC, said the bank’s case would show that almost all of 97 Forum leasing contracts showed “serious dishonesty” and were false.
“There are some 96 or 97 contracts … almost all of them are false, in the sense they are not signed by the counter-party. The counter-party hasn’t got the equipment, it hasn’t been making payments on it,” Mr Giles said. “This is a case of quite serious dishonesty in the amount of circa $250 million. In those circumstances, there should be no delay.”