Officials from corporate regulator the Australian Securities and Investments Commission (ASIC) and Australian Federal Police officers raided the headquarters of ASX-listed WiseTech Global on Monday over concerns about share sales by founder Richard White and three others.
WiseTech (ASX: WTC) shares fell more than 16% to around $71 in opening trade on Tuesday morning after the company informed the market.
“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,” the WiseTech statement to the ASX said ahead of the market opening.
“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 cooperate with any investigation.”
An ASIC spokesperson confirmed to Startup Daily that “with assistance from the Australian Federal Police, executed search warrants as part of an ongoing investigation”, adding that they were unable to provide further comment at this time because the investigation is ongoing.
Central to ASIC’s concerns is the sale of shares over what’s known as the “blackout period”, where a company’s key executives are banned from trading in its shares before financial results are released. In WiseTech’s case, the blackout period ran from December 31 to February 26.
While Startup Daily reported White’s sale of more than $440 million worth of WiseTech shares over 31 days before Christmas, subsequent media reports suggested he allegedly offloaded a further 1.8 million shares, worth nearly $230 million during the blackout period in early 2025 without informing the market. Details emerged in a broader disclosure of his share sales on September 10.
It revealed that between December 31, 2024, and February 14, 2025, White sold between 23,500 and 125,000 shares a day, almost daily, at prices above mostly above $120. All up he sold 3.4 million shares from December 24 to September 11, with his stake in WiseTech falling from 36.63% to 35.59%.
The sales have continued over the last several weeks, including 600,900 shares sold at an average price of $83.29 per share between October 17 and 23. He now has a 34.55% stake in the business that made him a multi-billionaire.
Last December White acquired the 8.17% stake in RealWise Holdings, the company which holds his investment in WiseTech, from his cofounder, Maree Isaacs, in a deal that made her a billionaire. The shares were worth around $129 at the time.
In February, a WiseTech spokesperson said in response to the blackout period trades that: “Mr White obtained independent legal advice prior to undertaking the share trades.”
At the time, White was not a director or executive of the company he cofounded 30 years ago, having resigned as CEO in October 2024, amid allegations of inappropriate behaviour, and a now settled legal action, against a woman who alleged she’d been his lover, over $92,000 worth of furniture.
A company review into White’s behaviour found that he “made inaccurate and incomplete disclosures concerning the nature and duration of his relationship” involving two employees, but has pledged to do better.
In late February, just days before WiseTech’s financial results were due to be released, its shares were placed in a trading halt at company’s request amid undisclosed governance concerns. A few days later four directors, including the chair, resigned amid a battle over White’s future in the business. He then returned as executive chairman.
The latest ASIC investigation adds a new shade to a colourful 12 months for the tech billionaire.
* Update: WiseTech shares were down 15.88% at $71.52 when the market closed.
Daily startup news and insights, delivered to your inbox.