Westpac files legal action against equipment finance company for alleged fraud

An office building with the Westpac logo is seen amid the easing of coronavirus disease (COVID-19) restrictions in the central business district of Sydney, Australia, June 3, 2020. REUTERS / Loren Elliott

July 2 (Reuters) – Westpac Banking Corp (WBC.AX) on Friday announced that it had filed a civil lawsuit against equipment financier Forum Finance Pty Ltd after the Australian lender uncovered potential fraud involving the rental of equipment for his clients.

The name of the country. Bank 2 said in a statement it had potential exposure of around A $ 200 million ($ 149.22 million) after tax, but the extent of the loss depended on the outcome of an investigation.

No customers were exposed to the loss, Westpac said.

“This is a complex problem, and we are working quickly to resolve it, including engaging with police and regulators,” said Westpac Managing Director Peter King.

There have been no reports of criminal charges, and Westpac’s spokesperson declined to comment on the statement, that the bank obtained asset freeze orders in connection with the trial.

Sydney-based Forum did not immediately respond to a Reuters voicemail requesting comment.

“At this preliminary stage, the potential fraud is sophisticated and appears to have been perpetrated externally,” King said.

($ 1 = AU $ 1.3403)

Reporting by Sameer Manekar in Bengaluru and Byron Kaye in Sydney, editing by Sherry Jacob-Phillips

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