WiseTech Global Shares Plummet on Founder Investigation

Shares of WiseTech Global Ltd (ASX: WTC) fell by 12.83% to A$32.15 on Monday following media reports of investigations by Australian federal authorities into the company's founder, Richard White.

The Australian Federal Police (AFP) is reportedly investigating White regarding alleged sex and trafficking matters connected to a former cleaner's immigration status and visa application. Separately, the Australian Securities and Investments Commission (ASIC) is investigating potential insider trading by White.

Investigations and Allegations

AFP Investigation

Media reports indicate the AFP is investigating Richard White over alleged sex and trafficking matters involving a former cleaner's immigration status and visa application. As of the time of reporting, WiseTech had not issued an ASX announcement on the matter.

ASIC Insider Trading Investigation

ASIC is investigating potential insider trading allegations against White. The probe includes a recorded phone conversation from early February 2025 in which White reportedly offered an ex-employee A$5 million in cash.

The employee had previously lodged allegations with the WiseTech board regarding underpayment, inappropriate conduct by White, and emails from White's wife.

White's status as either management or a consultant is central to ASIC's investigation into his sale of approximately 1.87 million shares between December 2024 and February 2025. WiseTech directors had reportedly advised White in December 2024 not to sell shares, considering him key management personnel. His estimated A$229 million share sell-off occurred during a company blackout period, when executives, directors, and key personnel are prohibited from trading shares.

White has stated that he was acting as a consultant, not an executive, during the period of the sales and had obtained legal advice supporting his actions. However, the recorded phone conversation provided to ASIC reportedly suggests White believed he still held significant influence within WiseTech. Trading records indicate White transacted over 200,000 shares in the two business days surrounding the February 2, 2025, phone call.

Settlement Discussions

Employee Settlement Offer

In the recorded call, White reportedly attempted to negotiate a settlement with the female employee, proposing a "deed of settlement and release" in exchange for her withdrawing her claim. White indicated that WiseTech would contribute approximately A$350,000, with him personally covering the remaining amount to reach the A$5 million net, tax-free offer. The employee was a consultant at the time of the allegations and did not hold an official position at the company.

Other Settlements

White previously settled with wellness entrepreneur Linda Rogan. This followed legal disputes where Rogan claimed White expected sexual favors for an investment in her business, and allegations of White purchasing a house for her. Reports also indicated White had paid for a multimillion-dollar house for another employee with whom he had a relationship and was selling shares to pay his ex-wife. In April 2025, it was reported that White reached a settlement with a third former employee regarding allegations of financial and visa assistance in exchange for sex.

All settlements included no admissions of wrongdoing.

Board Response

The WiseTech board did not accept White's personal attempt to settle with the employee in February 2025. In the recorded conversation, White also mentioned another woman who had consulted for the WiseTech board and made a complaint against him, demanding A$30 million. He referred to this as "extortion."

Board Resignations and Internal Findings

Director Resignations

Three weeks after the board rejected White's settlement attempt, four independent directors resigned—Lisa Brock, Michael Malone, Fiona Pak-Poy, and then-chairman Richard Dammery. Their stated reason was "intractable differences in the board and differing views around the ongoing role of the founder and founding CEO, Richard White."

The independent directors had sought to release findings from an external report by Seyfarth Shaw, but White allegedly threatened legal action, deeming the findings defamatory and accusing them of leaks.

Board Findings

Following the board's mass resignation, the new board released partial findings, stating White was "not fully transparent and candid" during the investigation and "misleading about personal matters concerning the ending of the relationship." No action was taken against him, and White subsequently returned as executive chairman. The allegations by the female employee remain unproven.

Previous Investigations

In October 2024, the AFP and ASIC searched a WiseTech office as part of an investigation into alleged insider trading by White and three employees. No charges have been laid, and no allegations were made against the company itself.

Company Background and Performance

Leadership Changes

White served as CEO until October 2024 and was appointed Executive Chair in February 2025.

Financial Performance

For the first half of fiscal year 2025, WiseTech reported underlying net profit of A$114.5 million and reaffirmed its full-year outlook. The company announced plans to cut approximately 2,000 jobs over two years as it increases use of artificial intelligence.

Business Operations

WiseTech provides logistics software via its CargoWise platform.

Stock Performance

Prior to the scandals emerging around White and WiseTech in October 2024, the company's shares were trading at approximately A$135 per share. By the close of business on the Friday before the most recent fall, shares had fallen to A$42.84. White owns approximately one-third of WiseTech's shares.

Comments and Responses

ASIC, Richard White, and WiseTech Global all declined to comment on the ongoing investigations.