Liquidators to alleged fraudster Bill Papas’ business empire are moving into the “asset recovery phase” and plan to begin issuing orders to sell the colourful soccer identity’s Australian and overseas assets.
Forum Finance creditors met for the second time on Friday at a low-key meeting where liquidators from McGrathNicol presented their report into the collapse of the company and their investigations into the group.
The majority of Mr Papas’ Forum empire was placed into liquidation amid allegations in a civil proceeding in the Federal Court from Westpac and two other lenders, Sumitomo and Société Générale, that Mr Papas had orchestrated a $500 million fraud on the business.
Liquidators told the meeting that a portion of the proceeds from the alleged fraud were used to purchase a range of lifestyle assets including vehicles like race cars and high-end vehicles and luxury homes. Mr Papas remains in Greece. This week the Federal Court issued an arrest warrant for Mr Papas over contempt of court after he failed to respond to proceedings.
Speaking after the meeting, liquidator Jason Ireland from McGrathNicol said the firm’s team had put a large amount of work into piecing together the picture of the Forum business and the alleged fraud.
“Following our investigations we have a fairly clear picture of this and, and our next steps are really switching into that recovery phase. That’s recovery onshore and offshore,” Mr Ireland told The Age and Sydney Morning Herald.
Liquidators have already identified tens of millions of investments by Mr Papas in offshore businesses in Greece, the United Kingdom and the United Arab Emirates that could be recovered to the benefit of the creditors to Forum’s companies, most notably Westpac which is funding the investigations and is the biggest victim of the alleged fraud. One avenue open to liquidators could include asking for liquidators to be appointed to Mr Papas’ businesses in Greece, which includes a company that owns the Xanthi Football Club.
McGrathNicol chairman Jason Preston said after the meeting the scale of the alleged fraud made it unique to other investigations the firm had conducted.
“The numbers are quite significant,” Mr Preston told The Age and Herald.
Source: | This article originally belongs to smh.com.au
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