The alleged scheme by Forum Finance to defraud Westpac by presenting false invoices and documents for financing has had a domino affect as more allegations by other banks.
Basile Papadimitriou, known as Bill Papas, is named as a defendant in a claim filed by SMBC Leasing and Finance to the Federal Court seeking consent to appoint a liquidator to Forum Enviro, part of the Furom Group of companies.
Sumitomo Mitsui Banking of Japan is the latest bank to take Mr Papas to court, reports the Australian Financial Review.
Estpac says that total exposure could be as high as $285 million whereas French bank Societe Generale said that its exposure to Forum Finance was about $9 million.
The newspaper reports that at least 30 jobs have been lost as voluntary administrators appointed to Bill Papas’ Forum Group of Companies have shut down one business and are reviewing the viability of two others.
READ MORE: Bill Papas pledges to return to Australia to face courts after missing numerous deadlines
Mackay Goodwin, a restructuring and insolvency group, confirmed Mr Papas had appointed the firm as voluntary administrator for his companies on 8 July. At the time of appointment, Mr Papas’ company employed 200 people.
On Friday, Federal Court Justice Michael Lee accepted an application by Westpac to appoint a provisional liquidator. Westpac’s choice was McGrathNicol after Forum Finance had proposed an application to appoint KordaMentha instead.