Shares in WiseTech Global, an Australian company that makes software used by freight and logistics businesses around the world, fell sharply on Monday morning after multiple news reports said federal police had opened an investigation into the company’s billionaire founder and executive chairman, Richard White.
The stock dropped as much as 14.6 per cent in early Sydney trading, touching its lowest point since August 2021. By midday it had recovered slightly but was still down more than 12 per cent, wiping billions of Australian dollars from the company’s overall worth, which had already been badly dented over the past year. WiseTech was the single worst-performing stock in Australia’s benchmark ASX 200 index on the day.
The story was first published by the Australian Financial Review, which reported that the federal police had opened a formal inquiry into Mr White this year. According to that report, the investigation centres on allegations that Mr White used a woman’s immigration circumstances and financial vulnerability to coerce her into a sexual relationship. The woman in question, a Brazilian national named Caroline Heidemann, had previously worked as a cleaner at WiseTech’s offices. She raised similar accusations against Mr White the previous year, but eventually settled the matter privately without taking further legal action and without any admission of wrongdoing on his part.
The complaint that prompted the current police investigation is said to have been filed by Kathy Phelan, the former chief executive of a company called Kyckr, which is controlled by Mr White’s private holding company. Ms Phelan alleged that Mr White invented a job for Ms Heidemann at Kyckr after she left WiseTech, and used a company letterhead to submit false information in a visa application on her behalf. According to the complaint, Ms Phelan said she was never told that a Kyckr letterhead she had been asked to provide would be used for that purpose. The AFP’s human exploitation taskforce is understood to be handling the case. Offences of the kind alleged, including forced labour and providing false information in visa applications, carry significant prison sentences under Australian law.
Mr White is one of the most prominent figures in Australian business. He co-founded WiseTech in 1994, building it from a small software operation in Sydney into a global company whose logistics management tools are used in more than 180 countries. The company listed on the Australian Securities Exchange in 2016 and at its peak was one of the most valuable technology businesses in the country. Mr White’s personal fortune has been estimated at around $8.9 billion, though the prolonged fall in WiseTech’s share price has reduced that figure considerably.
His recent history has been turbulent. In late 2024, following earlier reports about his personal conduct and relationships with female employees, Mr White stepped back from his day-to-day role as chief executive. Several board members resigned around the same period, adding to governance concerns among investors. He returned to the company as executive chairman in February this year, a move that some shareholders welcomed given his deep involvement in the company’s products and long-term direction, but which others viewed with unease given the unresolved questions surrounding his conduct.
At the same time, the corporate regulator, the Australian Securities and Investments Commission, has been separately examining whether Mr White and several employees traded shares in WiseTech during a period when such trading was not permitted. Mr White has said he sought legal advice about those transactions after stepping back from his chief executive role. No charges have been laid in that matter and no wrongdoing has been established.
The combination of overlapping investigations, a partial boardroom clear-out and governance uncertainty has rattled major investors. AustralianSuper, one of the country’s largest pension funds, is among the institutional shareholders that have reduced their exposure to WiseTech over the past year. The shares are now down more than 50 per cent since the beginning of 2026 and roughly 70 per cent below where they stood twelve months ago, a collapse that stands in stark contrast to the company’s earlier years of strong growth and rising valuations.
WiseTech’s underlying business is providing software that helps shipping companies, customs agents and freight forwarders manage the movement of goods across borders remains widely used and is seen as a genuinely useful product in a sector that depends on getting paperwork and compliance right. But the sustained damage to the company’s reputation, driven almost entirely by questions about the conduct of its founder rather than its commercial performance, has left investors uncertain about whether stability is within reach.
About the Author
Marcel Chidozie is a tech analyst and writer covering foreign news, fintech, and emerging technologies at TechRegard. Based in Nigeria, He's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. His work focuses on how technology shapes innovation across Africa and globally.
