AltX secured its debt over the properties via caveats. AltX also placed caveats over a number of properties owned by a relative of Mr Tesoriero. Sources close to AltX said this was to ensure full security for the AltX customers over their investments.
AltX also placed a caveat over an office building owned by the mysterious Forum Group Financial Services – a company that Westpac alleges looks on the surface to be a Forum company but was instead a secret vehicle owned by Mr Papas and Mr Tesoriero that was used to squirrel away the proceeds of fraud.
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Mr Papas also gave a personal guarantee to an AltX subsidiary as part of the financial arrangements between the Sydney company and the soccer identity,according to the official register of personal property securities.
A spokesman for AltX said it could not comment on any of its customers’ affairs for privacy reasons.
“We can,however,confirm that we no longer have in place any mortgages or caveats over any properties associated with Forum Finance founders Bill Papas and Vincenzo Tesoriero.
“I can confirm that any commercial dealings that we had were in keeping with our normal business practices as a provider of mortgage finance.”
Sources close to AltX,who were not permitted to speak on the record,say all investors were paid out in full and the investments relating to Mr Papas and Mr Tesoriero and associates had been closed out.
Separately,a source working in Westpac’s internal investigations team said the first they had heard of the alleged fraud was a company-wide email sent by Westpac chief executive Peter King once the lawsuit became public.
The source,who could not be named,said asset finance deals should be inspected in-person by a Westpac staff member to ensure the assets are legitimate and the fact this had not occurred indicated there could be a bank insider assisting the fraud.
“There will be a common denominator in who is pushing through loans,” the source said. “There would have to be.”