Already accused of defrauding Westpac of millions, Bill Papas may be in hot water with the regulator over failure to lodge key documents
Bill Papas, the Forum Finance boss who’s in the crosshairs of Westpac and other banks over an alleged multimillion-dollar fraud, is also at risk of facing regulatory action over his failure to lodge key documents related to Forum’s administration and liquidation.
Westpac and other banks have separately commenced federal court action against Papas and Forum, alleging that they were defrauded of a total of $400 million. With multiple Forum entities entering liquidation and administration, Papas was required to lodge a report on company activities and property (ROCAP), part of which is submitted to the Australian Securities and Investments Commission, according to a report by The Australian.
Papas has not submitted the ROCAP. He has sought an extension – but that’s expiring, meaning he is likely to be reported to ASIC by administrator and liquidator McGrathNicol. ASIC will decide whether to take action against Papas.
According to ASIC, failure by a company officer to provide a ROCAP or disclose or deliver books and records represents a “serious breach” of the Corporations Act. Referral to ASIC for such a breach often means court action, The Australian reported. Court-imposed penalties can include fines of $10,00 or more, and even imprisonment.
“If an officer fails to comply with court orders to fulfil their responsibilities within the required time, they may commit a continuing offence and be liable to further prosecution,” the regulator says on its website. “A continuing offence can attract an additional daily fine.”
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Papas has reportedly said that he was unable to provide the report because he no longer had access to Forum’s financial information and records.
Papas has been in Greece since June 21, fleeing there after failing to attend a meeting to answer questions about an account discrepancy, according to The Australian. Westpac and other banks accuse Papas and Forum of forging documents to obtain fraudulent loans.
