Bill Papas’ cousin, Eric Constantinidis, has been added as a respondent to Westpac’s legal action against the Forum Group founder, The Australian Financial Review (AFR) reports.
This comes as the bank seeks to recover $720,000 transferred via a share trading account that allegedly breached freezing orders.
Mr Papas’ assets were put under a freezing order by the court on June 28, which was extended on July 2, 9 and 16.
READ MORE: Bill Papas’ cousins Eric and Bill Constantinidis caught up in Forum Finance investigation.
According to the AFR, documents showed that two payments of $150,000 and $570,000 were made into a National Australia Bank account in the name E. Constantinidis on July 4 and July 7.
In September, MinterEllison, on behalf of Westpac, sent a letter to Mr Constantinidis ordering him to pay back the $720,000.
But correspondence with Mr Constantinidis’ lawyer, Bill Parsons of WH Parsons & Associates, said the money was not Westpac’s and was repayment of legal fees paid on Mr Papas’ behalf, as well as money owed to Mr Constantinidis and his companies.
READ MORE: Bill Papas appears at Xanthi FC game in Greece despite arrest warrant.
“Our client was not aware of a freezing order when he received and made the payments referred to above, nor was he aware of the allegations of a trust for the benefit of Westpac Banking Corporation that you allege,” Mr Parsons wrote in a letter, which was submitted to the Federal Court.
Mr Constantinitis has not been accused of being involved in any fraudulent activities, the AFR reports.
Source: The Australian Financial Review.
