AFP raids WiseTech office over Richard White’s selldown, shares dive

AFP and ASIC have raided WiseTech’s headquarters and other properties as part of an investigation into alleged insider trading involving founder Richard White and three employees.

WiseTech founder and executive chair Richard White.

Australian Federal Police and the corporate watchdog have launched multiple raids as part of an alleged insider trading investigation into WiseTech’s billionaire founder and chairman Richard White.

Shareholders pleaded for an independent voice inside the boardroom to steady the scandal-riddled software business after news of the investigation wiped more than $4bn from its market value on Tuesday and its shares tumbled 14.5 per cent to $72.62.

Mr White’s private life became embroiled in his business affairs when he was accused of exchanging business advice for sex, culminating in a governance storm that led to him being sidelined by his former board. He seized on a power vacuum when the company’s independent directors quit, consolidating his influence to return as executive chairman.

Mr White, who is believed to be in the country, went to ground on Tuesday. But he has previously been defiant, declaring that he is not going anywhere while dismissing lurid accusations against him as “crap”.

Mr White’s home was not one of the properties raided.

While no charges have been laid against Mr White, the investigation – which involves three other WiseTech employees – stands to be one of the most high profile insider trading probes mounted by the regulator. One analyst said it could take 18 months to play out.

Some shareholders argued for change in leadership. Industry fund Hesta – one of WiseTech’s biggest institutional investors – is considering whether to sell its stake in the company, following the lead of Australian Super, which dumped its holding this year.

“This week’s developments are extremely concerning and highlight the need for strong, long-term succession planning,” Hesta chief executive Debby Blakey said.

“We will seek further information from the company, including how WiseTech will manage Richard White’s role given these latest developments.

“WiseTech remains on our watchlist due to governance, leadership and culture concerns.”

AFP and Australian Securities and Investments Commission officers launched the raids earlier on Monday, searching WiseTech’s headquarters at Alexandria in Sydney and another location. Mr White’s Bexley compound was not included in the raids.

“They executed a search warrant requiring the production of documents regarding alleged trading in WiseTech shares by Richard White and three WiseTech employees during the period from late 2024 to early 2025,” WiseTech said in a statement to the ASX.

“So far as WiseTech is aware, no charges have been laid against any person and there are no allegations against the company itself. WiseTech intends to fully co-operate with any investigation.”

The investigation is understood to relate to Mr White selling more than 1.8 million WiseTech shares from late December to early February during a blackout period. These trades were not disclosed to the market at the time.

During that period, he was not a director nor an executive at WiseTech, having resigned from the board and as CEO in October. But he still has disclosure obligations as a significant shareholder of the company.

White hired his former chief of staff as CEO. Picture: John Fotiadis

He returned as executive chairman in late February after half the board, including former chairman Richard Dammery, resigned. The exodus came after the board was unable to finalise terms relating to a $1m a year consulting role as ‘founding CEO’ that Mr White assumed after he stepped down.

Mr White disclosed the share sales in September. This was included in a broader notice that involved selling 3.4 million shares from December 24 to September 11. This reduced his stake in the company to 35.6 per cent.

Mr White later said: “I’ve always taken the view that a gentle, orderly, predictable selldown is an appropriate thing for somebody who has a large stake and who is a founder and creator of the company. And I continue to have that view.

“I also continue to have the view that I will remain a substantial shareholder for the very long term.”

Macquarie expected the investigation to weigh on the company’s stock.

“Regardless of outcome, this will fuel further negative press and consume management attention as WiseTech shifts to their new commercial model and release new products and artificial intelligence functionality,” the broker said.

Mr White signed a 10-year employment contract with WiseTech in April.

In July, he appointed Zubin Appoo as CEO. Mr Appoo has previously served as chief of staff and deputy chief innovation officer.

Former chair Andrew Harrison – who stepped down from WiseTech last year – rejoined the company in March, replacing early investor Michael Gregg as lead independent director.

Australian Shareholders Association CEO Rachel Waterhouse declined to comment on AFP and ASIC’s investigation but called for more independent oversight of WiseTech: “ASA has consistently called for strong governance, transparency, and accountability,” Ms Waterhouse said.

“We remain concerned about the lack of board independence at WiseTech, particularly the appointment of the former chair as lead independent director.

“Strong governance requires independent leadership and effective oversight in the interests of all shareholders.”

WiseTech is set to hold its annual general meeting on November 21.