Alleged fraudster Bill Papas diverted funds to Greek football club Xanthi from Australia via an elaborate structure that involved the creation of a Bulgarian nut farmer and Greek green tea promoter, supposedly to evade local ownership rules.
Former Forum Group Executive Craig Rollinson said that the creation of two companies that received funding from an Australian entity, which in turn was loaned money from the group, may have been “designed to get around those rules”.
Mr Rollinson was questioned on Monday by Nick Kidd, a barrister for Forum’s liquidator McGrathNicol, as the advisory and restructuring firm probes the failure of Forum on behalf of creditors.
Bill Papas, Forum’s founder and CEO left for Greece weeks before an alleged fraud was made public, as banks, including Westpac, attempted to recover around $400 million.
A subsequent investigation into the group’s dealings has exposed a convoluted maze of payments out of Forum Group Financial Services, the entity at the centre of an alleged fraud that has entangled a trio of global banks.
Forum Financial Services paid funds into multiple entities that liquidators are attempting to track down. Among them was an entity named 286 Carlisle Street, which earlier this year made investments of €420,000 in Theion IKE, a Greece-based promoter of tea, and a €1.5 million in D&D Group, which was set up as a wholesaler of Greek and Bulgarian nuts, wheat and cereal.
Mr Kidd told Mr Rollinson that contracts to invest…