Police launch investigation into Bill Papas

The NSW Police Force has launched an investigation into Bill Papas, Forum Finance and the alleged $400 million defrauding of Westpac, Sumitomo Mitsui Banking of Japan and French bank Société Générale.

The official launch of the police investigation is the next step in the possible laying of criminal charges against the Forum founder.

“Detectives attached to State Crime Command’s Financial Crimes Squad are investigating. No further information is available,” a police media spokesman said.

Inquiries have been under way since Westpac reported the alleged fraud to NSW police in early July. In early August, inquiries were taken over by the State Crime Command Financial Crimes Squad – the state police’s key division for tackling fraud.

Westpac, Sumitomo Mitsui Banking and Société Générale have all launched civil actions against various Forum Group entities and Mr Papas.

Mr Papas has failed to return to Australia despite initially – through his lawyer – stating his intention to do so. In July, AFR Weekend revealed the first evidence – including photographs – that showed Mr Papas was in the coastal city of Thessaloniki with his girlfriend Louise Agostino, who was until recently in Australia and was said to be booking the Forum boss a flight home to face the allegations against him.

The day before Mr Papas was due to leave Greece to return to Australia – as relayed through his solicitor in the Federal Court – a positive COVID-19 test stopped him from doing so. As of late July, Mr Papas said he needed money to buy a ticket home – according to his barrister – and was racked with extreme anxiety and panic attacks, according to an affidavit.

‘Extreme anxiety and panic attacks’

“I have also been suffering from extreme anxiety and panic attacks since being served with court documents by [Westpac]. It has made it extremely difficult for me to attend to things required of me,” Mr Papas said in one of three sworn affidavits released in August.

“I have been obtaining regular treatment from a health practitioner for the past three years in Sydney for anxiety and depression, but as I am in Greece I have been unable to obtain treatment.”

Mr Papas intended to return to Australia “because he’s made a decision to attend to the serious allegations against him … and in relation to the company”, his lawyer Rocco Panetta told the Federal Court on July 7.

The Financial Review revealed on July 11 that Mr Papas failed to return to Australia as he previously said he would do. In a July 15 court hearing, Mr Papas’ barrister Jim Johnson confirmed Mr Papas remained in Greece and had tested positive for COVID-19 on July 8.

The Forum boss was said to have tested positive hours before a court appearance on July 9, when Justice Michael Lee said arrangements should be made for Mr Papas to dial in from Athens, although no update was provided to the court as to his previously stated intentions.

“Until recently, I have been alone in Greece and in isolation, which has been extremely difficult for me and my mental and physical health. To assist me I asked my partner to come to Greece to help me. Since her arrival my health has improved,” Mr Papas said in his affidavit.

Mr Papas said in the document that he has been in Greece since about June 21. This was 10 days after Westpac first raised an anomaly with Mr Papas regarding a contract with WesTrac, and six days after he failed to turn up to a meeting with the Seven Group-owned mining machinery business.

On June 30, Mr Papas informed his staff in Australia he needed to “step away from the business for health reasons” in an email obtained by The Australian Financial Review. This was nearly three weeks after Westpac began probing him on Forum Finance’s contracts.