Sumitomo Mitsui Banking of Japan has become the latest major bank ensnared by an alleged fraud carried out by Sydney-based firm, Forum Finance, with an exposure of nearly $100 million.
According to The Australian Financial Review, the bank’s leasing division, SMBC Leasing and Finance, had filed a claim to the Federal Court seeking consent to appoint a liquidator to Forum Enviro, which is part of the Forum Group of companies.
Basile Papadimitriou, better known as Bill Papas, is named as a defendant.
Court documents have confirmed an exposure of $98.9 million to Sumitomo Mitsui in the legal action against Forum Enviro and Mr Papas, the Australian Financial Review reports.
Sumitomo Mitsui has applied for freezing orders to be placed on Mr. Papas and is seeking damages for “the tort of unlawful means conspiracy” and “in deceit”.
According to the newspaper, along with the $285 million alleged by Westpac and a further $9 million by French bank Société Générale, the total exposure of the alleged fraud is getting close to $400 million. Humm Group also told the sharemarket it had a potential exposure of around $12 million.
Sumitomo Mitsui was not immediately available for comment by the AFR.
READ MORE: Still no sign of Sydney tycoon, Bill Papas, at centre of $300 million alleged Westpac fraud.
Source: The Australian Financial Review.
