In a Federal Court case hearing last Friday, Justice Michael Lee labelled the affairs of Forum Finance a “calculated and elaborate” fraud.
The company is accused of serious fraud by Westpac Bank, claiming the loss of almost $294 million from alleged fraudulent invoices and leases as well as missing goods.
The court appointed Westpack’s preferred liquidator McGrathNicol to Forum Finance that is also pursued by French bank Societe Generale.
Forum’s boss, Greek Australian Bill Papas (full Basile Papadimitriou) who has left Australia for Europe for reasons not yet known, has not yet provided a defence to any of the allegations.
“It is not an overstatement to remark that it appears that Forum Finance has, by some means or another, been involved in a long-running, calculated and elaborate fraud which would rank high in the catalogue of corporate misfeasance,” Justice Lee said.
“We’ve not heard from the man who appears to be primarily responsible, at least until recent times, for the conduct of the affairs of Forum Finance, the apparently peripatetic Mr Papas who left Australia for Europe for reasons not established…. but coincidence with when things started to unravel with Westpac.”
According to Judge Lee, Mr Papas has not even provided a on assets and liabilities, however, he did not oppose the appointment of liquidators to the company. Meanwhile, Mr Papas had pledged to return to Australia.
“It may be that Mr Papas returns to Australia tomorrow (Saturday), although at present that is not entirely clear.”
Westpac has already taken civil legal action against leasing group Forum and Mr Papas.
Neos Kosmos will be following up the case.
