WiseTech Global has stated it is unaware of any Australian Federal Police (AFP) investigation concerning its founder and executive chairman, Richard White. The company experienced a significant market value drop of over $2 billion on Monday, as investors reacted to media reports suggesting the AFP’s human exploitation taskforce is probing the billionaire.
Allegations Surface Amidst Market Volatility
Reports indicate the investigation centers on allegations that Mr. White exploited a Brazilian woman’s immigration status for sexual favors and provided inaccurate information on a visa application. In a statement to the ASX on Tuesday, WiseTech clarified that any alleged investigation pertains to Mr. White in a personal capacity, with no suggestion of an inquiry into the company itself.
“The company is not aware of any investigation as outlined in the article,” the statement read. “The executive chair has provided assurance to the board that he is not aware of any such investigation and also confirmed that he emphatically and unequivocally denies any involvement in or with human trafficking.”
Stock Plummets Following Media Reports
The freight software company’s stock saw a decline of nearly 20 percent in market capitalization following reports in national newspapers. These reports detailed that the taskforce had initiated a probe into Mr. White following a complaint lodged by Kathy Phelan, the former chief executive of Kyckr, a company also under Mr. White’s control.
Ms. Phelan reportedly informed law enforcement that Mr. White fabricated a reason to employ Caroline Heidemann, a former WiseTech cleaner, and subsequently supplied false information to secure her visa. The AFP has indicated they will provide comment “at an appropriate time.”
Background of Scrutiny and Boardroom Changes
These fresh allegations extend a period of considerable turmoil at the highest levels of WiseTech, intensifying concerns for its investors. Mr. White stepped down as chief executive in late 2024 after a series of misconduct allegations, only to resume his leadership as executive chairman months later. This return followed a significant boardroom reshuffling attributed to “intractable differences in the board and differing views” regarding his continued involvement.
Subsequently, a board review examining other allegations against him found some unsubstantiated, as the complainants opted not to participate in interviews. However, the review did conclude that Mr. White had made misleading statements concerning “close personal” relationships with two employees.
At that time, a board sub-committee informed Mr. White that “a number of the matters are serious in nature, and that such conduct is not acceptable and must not be repeated.”
Ongoing Investigations and Previous Board Findings
In October, regulatory authorities, including the Australian Securities and Investments Commission (ASIC) and the AFP, conducted raids on WiseTech’s Sydney office. The agencies sought documents related to allegations of insider trading in the company’s shares by Mr. White and three employees during his extended absence. An ASIC spokesperson confirmed that this investigation remains active.
Previously, in December, the board cleared Mr. White of further allegations concerning the misuse of company funds. These claims included expenditures on an American associate’s rental property and plastic surgery. The board noted that one outstanding matter, raised by a former staff member, was being addressed through “a separate confidential company process for matters of this nature” and was therefore not part of the aforementioned board review.
