A massive fraud case involving Sydney leasing company Forum Finance is approaching its conclusion. Westpac, along with two other banks, is seeking nearly $400 million in damages after uncovering an elaborate scheme involving fake equipment financing agreements.
The case began in June 2021 after Westpac discovered the alleged fraud. Forum, led by Bill Papas, is accused of creating fake lease agreements for non-existent printers, office equipment, and waste digester machines. Over $500 million was reportedly handed over by the banks before the scheme was exposed by a customer inquiry.
The case was originally set to conclude in February 2023. However, judgment was delayed due to injuries sustained by the presiding judge, Justice Elizabeth Cheeseman, in a car accident. The complexity of the case, involving over 40 parties, further contributed to the delay.
A judgment is now expected in October 2024. The outcome could trigger efforts to recover funds from companies associated with Forum or individuals involved, including Papas, who fled Australia after the scheme's discovery.
Westpac and liquidators have already begun seizing assets linked to the alleged fraud. This includes evicting Forum's business partner from a luxury property and pursuing claims against other companies potentially connected to the scheme. NSW Police are also monitoring the case and may pursue criminal charges depending on the court's judgment.
