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Forum Group CEO Bill Papas, left. announcing a partnership between Iugis and Liverpool FC in February 2020. <\/span>Credit:<\/span> <\/cite><\/p>\n Westpac took emergency court action late last month accusing Forum Finance of defrauding the bank by impersonating its customers. The alleged fraud has been described by a judge as \u201ca long-running, calculated and elaborate fraud which would rank high in the catalogue of corporate misfeasance\u201d.<\/p>\n Westpac alleges in court documents obtained by this masthead that one of its Financial Crime and Fraud Prevention team members approached NAB on June 22 to report the fraud and asked NAB to stop transactions on a Forum Finance account.<\/p>\n \u201cAt this time, (the Westpac staffer) was advised by NAB that the account was \u201cstopped\u201d and that they would question their customer in relation to the transaction,\u201d Westpac alleges.<\/p>\n Three days later, a senior Westpac employee discovered NAB had not fulfilled its request, despite its initial assurances.<\/p>\n \u201c(The Westpac staffer) informed me that NAB had told him that (the) account was in the name of Forum Finance Pty Limited, that NAB had a long-standing customer relationship with Forum Finance, had not placed a hold on that account and would need an email with particulars of the fraudulent transactions to place a hold on the account,\u201d Westpac\u2019s lawyer said in documents filed with the court.<\/p>\n Sources at NAB not permitted to speak on the record publicly said the bank believed it had to protect its customers and it had previously asked for alleged fraud victims of its customers to prepare an email detailing exact transactions at issue and details of the alleged fraud before considering such a response. It is not clear why NAB gave the initial assurance and then didn\u2019t put a hold on the account.<\/p>\n NAB was the banker of choice for Forum Finance and Mr Papas and Mr Tesoriero, providing credit cards and loans secured to Forum\u2019s property, sources aware of the relationship between NAB and Forum said.<\/p>\n Westpac alleges much of its money flowed into a subsidiary of Forum Finance – Forum Group Financial Services. Company records show NAB lodged security over all of Forum Group Financial Services property and assets in 2020.<\/p>\n The quantum of the loans it provided to Forum for its business operations is not clear, but is not expected to be material to the bank. NAB has since handed over all bank records to Westpac as per court orders.<\/p>\n The Market Recap newsletter is a wrap of the day\u2019s trading. <\/i><\/b>Get it each weekday afternoon<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in Business<\/h2>\n
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