WiseTech Founder Addresses Trafficking Allegations
WiseTech Global has asserted that it has no knowledge of any Australian Federal Police (AFP) investigation concerning its founder and executive chairman, Richard White. The company’s statement comes as its market value plummeted by over $2 billion on Monday, driven by investor concerns stemming from media reports. These reports allege that the AFP’s human exploitation taskforce is investigating the billionaire over claims of exploiting a Brazilian woman’s immigration status for sexual purposes and providing false information on a visa application.
Company Denies Knowledge of Probe
In a filing to the ASX on Tuesday, WiseTech clarified that any alleged investigation pertains to Mr. White in a personal capacity and does not involve the company itself. “The company is not aware of any investigation as outlined in the article,” a spokesperson stated. Mr. White has reportedly assured the board that he is unaware of such an investigation and has emphatically denied any involvement in human trafficking.
Allegations Surface After Complaint
The freight software company experienced a significant drop in its stock, losing nearly 20% of its market capitalization. This decline followed reports suggesting the AFP taskforce initiated a probe into Mr. White based on a complaint from Kathy Phelan, the former chief executive of Kyckr, a company also controlled by Mr. White. Ms. Phelan reportedly informed law enforcement that Mr. White fabricated a reason to employ Caroline Heidemann, previously a cleaner at WiseTech, and supplied inaccurate information to secure her visa.
The AFP has indicated that it will issue a comment “at an appropriate time.” It is important to note that these allegations have been made, and no determination of guilt or misconduct has been established.
Background of Turmoil and Previous Allegations
Mr. White is the founder, largest shareholder, and chief innovation officer of the logistics software firm, whose products streamline global supply chain operations. These new allegations extend a period of instability at the top of WiseTech and have further impacted investors. Mr. White previously stepped down as chief executive in late 2024, following a series of misconduct allegations. He later returned to the executive chairman role months afterward, following a significant board reshuffle attributed to “intractable differences in the board and differing views” regarding his continued involvement.
A subsequent board review, investigating other allegations against him, found some claims unsubstantiated after complainants declined to be interviewed. However, the review did conclude that Mr. White had made misleading representations concerning “close personal” relationships with two employees. At the 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
In October, the Australian Securities and Investments Commission (ASIC) and the AFP conducted raids on WiseTech’s Sydney office, seeking documents related to alleged insider trading of 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 involving the misuse of company funds, including expenditures on a rental property and plastic surgery for an American associate. The board stated that one outstanding matter, raised by a former staff member, was being addressed through a separate, confidential company process for such issues and was therefore not part of that specific board review.
