Shares of Wisetech Global slid sharply on Monday after local media reported that the Australian Federal Police had launched an inquiry into founder Richard White.
By 05:45 GMT, the stock had dropped as much as 16% to A$31, a retreat that left the share price at its lowest point since August 2021. The sharp move came after an Australian Financial Review report said the AFP's human exploitation taskforce had begun investigating following a formal complaint.
The AFR report stated the complaint alleged White exploited a woman's immigration status and financial vulnerability for sex, and that he provided false information in support of a visa application. The story said the probe tied to allegations involving Caroline Heidemann, identified in the report as a former cleaner at Wisetech, and statements from former Kyckr chief executive Kathy Phelan about a visa sponsorship arrangement.
The reporting also noted that White has not been charged with any offence. The investigation and accompanying coverage add to the scrutiny of White after he resumed the role of executive chairman earlier this year, having previously stepped back from executive duties while reviews into his conduct took place.
Market attention intensified alongside the media coverage. Wisetech Global was listed among AI-picked strategies in third-party market tools, and promotional material for those tools described an AI system that evaluates WTC using more than 100 financial metrics on a monthly basis.
All facts in this report are drawn from the cited local media coverage and company-related disclosures reported in that coverage. No new charges have been announced and the investigation is reported to be ongoing.
Key points
- Shares of Wisetech Global fell up to 16% to A$31 by 05:45 GMT, marking the lowest price since August 2021.
- The Australian Financial Review reported that the AFP human exploitation taskforce opened an investigation after a complaint alleging exploitation of immigration status, financial vulnerability and false information in a visa application.
- The allegations cited involve Caroline Heidemann, described as a former cleaner at the company, and comments by former Kyckr CEO Kathy Phelan regarding a visa sponsorship arrangement; White has not been charged.
Risks and uncertainties
- The investigation is reported to be ongoing and no charges have been filed, leaving legal outcomes unresolved.
- Heightened public and regulatory scrutiny of the founder could affect investor confidence and share-price volatility for Wisetech Global.
- The situation raises reputational risks for the company while inquiries and reviews remain active.