WiseTech Global has hit back at allegations that the Australian Federal Police are investigating executive chairman Richard White over claims of sexual exploitation and providing false information on a visa application, saying the company is not aware of any such investigation and that White βemphatically and unequivocallyβ denies any involvement in human trafficking.
The ASX announcement, released Tuesday morning, said the alleged investigation relates to White in a personal capacity and there is no suggestion of any probe into the company itself.
This masthead reported on Monday that federal police are investigating the billionaire businessman over claims he exploited a womanβs immigration status and financial insecurity for sex and that he provided false information on a visa application.
WiseTech shares dropped more than 18 per cent to $30.08 on Monday β their lowest point in five years β extending a near two-thirds slump over the past 12 months amid concerns about Whiteβs personal conduct, a broader software sell-off and a separate ASIC investigation into alleged insider trading involving more than $200 million in share sales. On Tuesday morning, its shares were back up nearly 4 per cent.
The investigation centres on Caroline Heidemann, a Brazilian woman who worked for WiseTech as a cleaner from January 2019 until she was made redundant during the COVID-19 pandemic in May 2020. White is alleged to have used his power and financial influence to coerce her into a sexual relationship, providing her with credit card access, an apartment and English lessons β financial support that ultimately exceeded half a million dollars over the course of their relationship, which ended in mid-2024.
After Heidemannβs marriage broke down in mid-2021, leaving her without the right to remain in Australia, she initially obtained a temporary student visa. In February 2023, she was granted a temporary work visa sponsored by Kyckr, a small anti-money laundering compliance company that Whiteβs private business, RealWise, acquired in 2022.
This masthead reported that the AFPβs human exploitation taskforce launched the investigation this year following a complaint from former Kyckr chief executive Kathy Phelan, who alleges White requested a Kyckr letterhead in December 2023, telling her he needed it for tax purposes before using it to create alleged false documentation sponsoring Heidemann for the visa.
βThe role described in the document did not exist within Kyckr. No arrangement of any kind involving Ms Heidemann had ever been discussed at Kyckr, proposed to me, or approved by the board,β Phelan wrote in her complaint to the AFP. βThe representations made in the document were false.β
Phelan, who was sacked as Kyckr chief executive in June last year and is separately suing White over her departure, said she was never consulted about the visa application and was not told her name or position had been associated with it.
White has denied the allegations. He and Heidemann both declined to comment, as did Phelan. The AFP also declined to comment, though multiple people briefed on the matter confirmed to this masthead that Phelanβs complaint had led to a formal investigation. This masthead is not suggesting White is guilty of human exploitation or providing false visa documents.
The AFP probe adds to a torrid period for WiseTech, which in March announced it would cut a third of its global workforce β about 2000 roles β citing artificial intelligenceβs ability to replace software development tasks. White has drawn internal criticism after boasting that AI bots could be built to replace staff in 15 minutes. About 190 Australian employees are currently in redundancy consultation.
Analysts at Morningstar said the investigation did not change their fair value estimate for WiseTech, which they hold at $138 a share, more than three times Mondayβs closing price of $36.88. Analyst Roy Van Keulen said the investigation was more likely to result in visa fraud penalties than human trafficking charges, and that the firm did not expect White to be forced from the company. However, Morningstar flagged that a 15 to 20 per cent cut to its fair value estimate would be appropriate if White were removed, given his central role in the business.
βWiseTechβs CargoWise has no competitors of note and has a long runway of problems to solve for customers,β the note said, arguing that the stockβs steep discount reflected excessive market fears about artificial intelligence disrupting the logistics software sector rather than a fundamental reassessment of the business.
White co-founded WiseTech in 1994 and grew it into a listed company that last year completed its largest ever acquisition, the $US3.2 billion purchase of US-based logistics software rival e2open. He remains the companyβs largest shareholder and returned as executive chairman in February after briefly stepping down from executive responsibilities last year amid a board-commissioned review into his conduct and relationships with women at the company.
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David Swan is the technology editor for The Age and The Sydney Morning Herald. He was previously technology editor for The Australian newspaper.Connect via X or email.