WiseTech Global Ltd. (ASX: WTC) shares experienced a significant decline following media reports of a police probe into its billionaire chairman and founder, Richard White. The allegations claim White exploited a woman's immigration status for sex and provided incorrect information for her visa application. The company's stock fell as much as 14% in early trading in Sydney on June 22nd, ultimately closing down 12% at A$32.52 by noon local time. This drop slashed WiseTech's market value to A$11 billion, equivalent to $7.7 billion or S$10 billion.
Several media outlets, including the Sydney Morning Herald and the Australian Financial Review, reported that the Australian Federal Police's human exploitation taskforce initiated an investigation after a complaint from Kathy Phelan, the former CEO of Kyckr, another company controlled by White. Phelan alleged that White fabricated a reason to hire a Brazilian woman, Caroline Heidemann, who was previously employed by WiseTech as a cleaner, and then provided false information to secure her a visa. Heidemann herself had reportedly made similar accusations against White in 2025 before reaching a settlement with him.
This incident adds to previous turmoil at WiseTech's leadership, as White had stepped down as CEO in late 2024 due to misconduct allegations, only to return as executive chairman months later. Analysts have previously estimated that White's departure could reduce the company's market value by 20%. The current CEO, Zubin Appoo, who joined in July 2025, is implementing an AI-driven revamp, which includes significant cost-cutting measures and the elimination of approximately 2,000 jobs, nearly 30% of its workforce.
Despite the initial sharp decline, WiseTech shares showed a rebound of over 5% on June 23rd, trading at $31.60. This recovery followed a company statement to the ASX acknowledging the media reports. WiseTech stated that it was not aware of any investigation into the company itself, and Richard White had assured the board he was unaware of such an investigation and "emphatically and unequivocally denies any involvement in or with human trafficking." Despite the allegations, many analysts maintain a bullish outlook on WiseTech, with the majority holding "buy" or "strong buy" ratings and an average target price around $67.17 to $72.39, implying a potential upside of over 100%.
