‘Too good to be true’: Forum spent Westpac money on Lamborghinis, racehorses

It is inconceivable that alleged fraudster Bill Papas and his business partner didn’t know the purchase of multiple Porches, Lamborghinis and racehorses was illegitimate, banking giant Westpac has claimed on the first day of Federal Court hearing into a $500 million alleged fraud committed against it and two other lenders.

Westpac’s barrister, top silk Jeremy Soljar, SC, detailed in court on Monday how Forum Finance founder Bill Papas and his associates allegedly used some of the half a billion dollars loaned to the business equipment financier to fund the purchase of luxury cars, jewellery, property and other valuables.

“It is simply inconceivable that an office supply company is earning the sort of money that would be required to be buying multiple Porsches, Lamborghinis, racehorses, and all the rest of it,” Soljar said.

“It was all just too good to be true. And it was plainly obvious to any reasonable person in the position of some of these principles that – we will say – that there was something very wrong going on.”

Westpac has accused Papas of orchestrating one of the biggest frauds in Australian history — allegedly swindling more than $500 million from the Australian bank and the local branches of two global lenders, Sumitomo and Societe Generale.

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Westpac and the other lenders allege Papas and Forum drew up fake contracts with some of the banks’ biggest customers such as Coles, Woolworths, and Westfield owner Scentre. It allegedly forged executive signatures to extract the $500 million under the guise of it being used to finance equipment hired out to these companies.

Papas, and Vince Tesoriero – a race-car driving cafe owner from Melbourne – were directors of many Forum group companies and beneficiaries of properties acquired using Forum funds as well as millions of dollars worth of luxury goods.

Soljar told the court that dealings set up by, or involving, Tesoriero and Papas are at the heart of its case.