‘I smell a rat’: Westpac alleged fraud leaves trail of forged signatures, false documents

Westpac says at least seven major corporate customers including Coles, Woolworths, Veolia and WesTrac have been caught up in an alleged fraud involving fake invoices and forged signatures that could cost the bank more than $290 million.

After the bank launched legal action against Sydney-based Forum Financial and Sydney Olympic chairman Basile Papadimitriou on Friday, documents released by the Federal Court reveal new details about the scandal and how it was uncovered.

Westpac has not been able to contact Bill Papas since mid-June. Credit:Facebook

One of the documents also says Mr Papadimitriou, known as Bill Papas, has not been contactable since mid-June when he did not attend a scheduled meeting with WesTrac due to a “health emergency”. The bank’s repeated requests to contact Mr Papas had gone nowhere and the last information received suggested he was in Perth Hospital, according to the documents.

Westpac has said none of its corporate customers appear to have suffered financial loss, but the affidavits point to a trail of fake signatures that were uncovered following an investigation in recent weeks. “There are at least four customers which are reputable organisations which have stated the transactions are fictitious,” the bank said in a court filing.

An affidavit from Westpac banker Nicholas O’Brien said after concerns were raised regarding a WesTrac leasing facility in late May and early June, he assisted with inquiries involving several other corporate clients of the bank.

The affidavit describes how the bank went on to uncover problems with Veolia Environmental Sevices, Coles Supermarkets Australia, HWL Ebsworth Lawyers, Australian Leisure and Hospitality Group, Scentre Shopping Centre Management and Catholic Healthcare.

Westpac contacted HWLE chief operating officer Kris Hopkins to inquire about the Forum Finance relationship, but he said he had no knowledge of the payments. “I smell a rat,” Mr Hopkins said, according to court documents. “Our IT manager has reached out to Forum contacts who said they weren’t familiar with the contracts. Forum direct debits HWLE for its payments, but I will put a stop on the direct debit pending further advice.”

A Coles employee made similar observations after inquiries from Westpac: “I am unsure where these payment schedules and executed documents have come from – I have never witnessed these documents, let alone signed them. Additionally, that is certainly not my handwriting or signature.”

An affidavit filed by MinterEllison solicitor Caitlin Murray, acting for Westpac, said if the bank’s investigations were correct, the alleged fraud involved false signatures on documents for 100 separate transactions between at least 2018 and June 2021. An investigation is ongoing to determine the full extent of the alleged fraud.

“In light of the significant quantum, the number of transactions and the time period over which the fraud has occurred, Westpac holds concerns that the respondents are capable of destroying and removing documents and information which may be critical to the ongoing investigation into this matter, and that their behaviour suggests that they may well act in that manner to delay or defeat an investigation into their conduct and proof of their conduct,” Ms Murray’s affidavit says.

Westpac had authorised Sydney firm Eqwe to act as an introducer between its corporate clients and third parties that could provide assets that would enable the customers to expand their operations. While Eqwe would set up potential deals to lease equipment, Westpac would provide the finance.

Eqwe, which describes itself as a strategic commercial facilitator, introduced Forum Finance to at least seven Westpac customers, but the firm billed Westpac for a far greater sum than what had been agreed in the alleged fraud which is worth hundreds of millions of dollars.

Eqwe has told Westpac it was “not aware of concerns with the contracts”, according to the court documents.

Eqwe’s lawyer, Chris McArdle, blamed Westpac for not conducting proper due diligence in the deal set up between the bank and Veolia. “[Mr] Papas seems to have procured a vastly inflated amount of money from Westpac,” Mr McArdle said. “Westpac apparently didn’t dispatch anyone in a cab to go around and count the devices.”

Westpac insiders last week blamed the bank’s lax approach to invoice verification, with processes for checking invoices described as “non-existent”.

Forum Finance banks with National Australia Bank, according to the documents. NAB could not comment on the matter but said it would co-operate with all investigations.

Mr Papas and Forum Finance were contacted for comment.

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