Dirty deeds might be done dirt cheap, but ASIC ‘don’t like this kind of behaviour’.

The founder and executive chairman of one of Australia’s best tech companies, Richard White, once repaired guitars for Aussie rock groups AC/DC and The Angels, but the music might have stopped on his rip-roaringly successful company-building career with government regulators raiding his offices and potentially accusing him of insider trading.

White eventually created a tech-driven logistics business called WiseTech (WTC) that’s the envy of the world. This saw his wealth grow to over $7 billion, despite company and relationship problems, that became public scandals.

The raid by the company regulator ASIC and the Australian Federal Police has taken over a billion dollars of White’s net worth. Along with his suffering shareholders, he has seen WTC’s share price tumble 15.88% or $13.50 to $71.52 yesterday.

That has wiped over $4 billion off the company’s market capitalisation (or value). Not only could this raid mean White and three executives could be accused of insider trading, but there could also criminal charges that could lead to a time in jail!

While small mistakes over share trading could end in a fine or rap over the knuckles, this is a serious allegation involving over $200 million worth of shares that were sold during the blackout period, when directors and major executives of a public company can’t buy or sell stocks. White is accused of doing exactly that, which is a huge mistake that the stock market hated. The Sydney Morning Herald says that when White was selling those shares “the average price over that period was $122, meaning White probably raised some $229 million from the sale of WiseTech shares”. This action would have driven share prices down and his fellow shareholders would have lost money. If it’s true, ASIC wouldn’t like this.

This chart shows how White’s public scandals and now this ASIC investigation have hurt WTC’s share price.

Until late last year, WTC’s share price looked like that of a great US tech business and was trading around $135. But it’s now $71. This fall from grace has seen that price slump close to 50%, which primarily has been driven by White’s less-than-conventional behaviour for a prominent corporate leader.

Respected business journalist Elizabeth Knight summed up the situation White faces: “Conventionally, ASIC’s general focus on share-trading has been insider trading, which can be criminal, although the regulator has not confirmed the nature of the share trading it is investigating. But WiseTech provided a flavour of what’s going on in its statement on Tuesday, saying the AFP and ASIC executed a search warrant requiring the production of documents regarding alleged trading in WiseTech shares by White and three WiseTech employees during the period from late 2024 to early 2025.”

Despite his unusual behaviour, the stock market has held a belief that the past public problems for White and WTC’s share price would subside, and the quality of this great business would prevail. However, if these alleged charges stick and this major shareholder, who still owns one-third of the shares on offer, goes to jail and/or is banned as a director, there’ll be a huge question mark over this company.

While at this stage the company hasn’t announced that White is being stood down (which would be the usual course of action), when it comes to this graduate of the rock n’ roll industry and lead player in the rockstar tech industry, he always seems like a rebel without a clause that explains his unconventional corporate behaviour!

A part of the near 16% sell-off yesterday for WTC’s share price was the fear of what the company does if Richard White is binned from his own company. While in the space of tech logistics he’s seen as a genius, in the turbulent seas of the corporate world, he can look like a fish out of water.

While some shareholders will be dumping WTC shares, others will see this low share price of $71.52 as a buying opportunity. For those, the gamble is that White survives this investigation and resumes his leadership of his company or the existing management team can navigate WTC without White’s involvement.

For such a great company, this makes a blue-chip business look like a real speculative play with both terrific upside and downside!

I’ve often said in my weekly webinar for Switzer Report subscribers that White is in more trouble than Indiana Jones in the Temple of Doom. But like the Harrison Ford character, he often escapes in the nick of time. White-versus- ASIC and the AFP is bound to be a gripping adventure that will leave WTC shareholders on the edge of their seats.