The investigation could mean criminal charges in the alleged fraud against Westpac
New South Wales’ Financial Crimes Squad has begun a formal investigation into Forum Finance and its founder, Bill Papas, following allegations that Forum scammed $400 million from Westpac and other banks.
NSW Police referred the case to the Financial Crimes Squad in late July, according to a report by The Australian. The Financial Crimes Squad has now announced that it is pursuing the investigation, which – depending on the evidence – may lead to charges being laid.
“Detectives attached to State Crime Command’s Financial Crimes Squad are investigating,” a spokeswoman for NSW Police said Monday. “No further information is available.”
Westpac has accused Forum and Papas of using phony documents and forged signatures to obtain unauthorised loans. French bank Société Generale and Japan’s Sumitomo Mitsui Banking Corporation have also lodged Federal Court cases against Forum entities, Papas, and his business partner Vincenzo Tesoriero.
Luke Price, head of commercial broker and consulting group EQWE, reported the alleged fraud to North Sydney Police Station on June 24 after an internal investigation revealed inconsistencies in Forum accounts, The Australian reported. Westpac reported its fraud allegations to NSW Police, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.
Read more: Papas suspected of transferring Forum cash to personal accounts
Papas fled to Greece after skipping out on a June 15 meeting with WesTrac to explain alleged irregularities in Forum accounts. He has remained in Greece, claiming a positive COVID-19 test and a lack of funds to purchase a plane ticket as reasons for his failure to return to Australia.
Last week, The Australian reported that Papas was suspected of transferring hundreds of thousands of dollars from his businesses to his personal accounts in the weeks before Westpac lodged its court action.
The assets of both Papas and Tesoriero are currently subject to freezing orders, The Australian reported. Some of those assets, including a luxury yacht, are under orders to be sold.
