Bill Papas (Forum Group)
The founder of Sydney-based managed services provider Forum Group, Bill Papas, has reportedly ‘disappeared’ following an investigation by Westpac into fraud allegations totalling more than $250 million.
On 2 July, Westpac told its shareholders it commenced proceedings in the Federal Court against Forum Finance “following the discovery of a significant potential fraud” of about $200 million after tax, with the extent of the loss dependent on the outcome of its investigations and recovery actions.
Forum Finance and Forum Group are both owned by Papas, but are run as separate entities.
“The potential fraud relates to a portfolio of equipment leases with Westpac customers arranged by Forum Finance, which were referred to Westpac’s Institutional Bank,” Westpac told shareholders at the time. “While investigations are ongoing and the NSW Police, ASIC and APRA have been notified, at this stage it appears no Westpac customer has suffered a financial loss.”
As a result, Westpac obtained freezing orders and, along with the Federal Court, agreed to appoint Jason Ireland and Jason Preston of McGrathNicol as liquidators to Forum Finance on 9 July to investigate its assets and liabilities.
All of Papas' companies were placed into administration on the same day, with the appointment of Domenico Calabretta, Thyge Trafford-Jones and Grahame Ward of Mackay Goodwin.
The first creditors' meeting will be held on 20 July.
The administration impacts the Forum Group of Companies, which is understood to be the parent company for a range of entities, including Forum Group; Forum Fleet; Forum Group Financial Services; Aramia Holdings; Autonomous Energy; Forum Direct; Forum Enviro; Imagetec Financial Services; Imagetec Solutions; Intrashield Investment Group; Iugis Waste Solutions; OneSource Australia; Orca Enviro Solutions; Orca Enviro Systems; Smart Fleet Management; Spartan Consulting Group; and Eros Management.
According to the ABC, the discovery of the alleged fraud took place after a Westpac customer noticed an anomaly in a lease agreement with their name on it.
As Westpac investigated the matter further, it discovered that within three years, it had paid $254.5 million to Forum in transactions involving "forged" leasing contracts for office equipment like computers, photocopiers and printers.
Since the initial investigation was flagged by Westpac, Papas has reportedly not been heard of or seen since; not even his solicitor can account for his whereabouts.
Vince Tesoriero was also listed as a director of Forum Finance, according to the Australian Securities and Investments Commission (ASIC), but according to his barrister, he resigned in April 2020.
In September last year, Tecala and Forum Group struck a partnership that saw the two managed service companies exchange services, dipping into the talent pool between the two.
At the time, Papas said the partnership complemented a multi-million dollar growth strategy for Forum Group, which has made many acquisitions through the years.
The acquisitions included companies such as national managed service provider SmartPrint, Imagetec, Crown Business Solutions, Chilliprint, QBM and Agem Printing.
Forum, which was founded in 2011, has offices in Sydney, Melbourne, Brisbane and Perth along with a developing regional dealer network, reaching more than 4,000 customers such as Findex, HWL Ebsworth Lawyers and Cerebral Palsy Australia.
On his LinkedIn profile, Papas claims Forum Group was a $58 million company that was expanding into international markets.
Tecala managing director, Pieter DeGunst, told ARN, it had a referral partnership agreement in place for approximately one year, and it has not been caught up with Forum, nor any commercial exposure for Tecala or associated clients.
"All customer projects and current prospects are continuing with their direct relationship with Tecala," DeGunst said. "We had no indication of any wrongdoing, we received the information via the press and this was the first we became aware of any issues.
"We acted immediately in terminating our partnership and contacting customers and prospects to explain the situation, and Tecala's actions."
