Westpac has taken another step in its pursuit to recover part of the $500 million stolen by Bill Papas and his Forum Group companies, targeting funds linked to a property once controlled by Papas’ business partner Vince Tesoriero and his father.
According to The Australian, the Federal Court previously found that $942,000 of Westpac’s money was used by Tesoriero and his father to buy a property in Glen Huntly, Victoria, which later sold for $1.7 million.
After the mortgage was repaid, approximately $760,000 remained and was placed in a Supreme Court-controlled account.
However, the company that owned the property—1160 Glen Huntly Road Pty Ltd—was deregistered by ASIC for unpaid fees, forcing Westpac to return to court to have it reinstated in order to appoint receivers and access the funds.
Justice Elizabeth Cheeseman granted the request, noting no opposition from Papas or Tesoriero.
Westpac, along with Sumitomo Mitsui Banking Corporation and Societe Generale, secured a sweeping court judgment six months ago confirming the $500 million fraud, which was described as “audacious.”
Despite this, a large portion of the stolen funds remains unrecovered.
Liquidators from McGrathNicol have realised an estimated $50 million to $100 million from Forum Group assets, while Westpac has also seized assets in Greece, where Papas is believed to be residing.
The bank continues its efforts to trace and reclaim missing funds, but has yet to move to bankrupt Tesoriero.
Source: The Australian.
