Directors who harmed First Nations people cop heavy fines for breaching duties

Collapsed company Youpla Group’s board members Jonathan Law, Michael Wilson, and Geoffrey Clayton have been disqualified from managing corporations and ordered to pay pecuniary penalties after the Federal Court found they breached their duties as directors of the various companies under Youpla Group.

Youpla operated several funds providing funeral insurance, predominantly marketed to Indigenous Australians.

The directors were previously caught for operating a funeral insurance scheme which saw unaffordable premium increases for its First Nations clientele.

The Federal Court has now found that the directors breached their duties and approved orders proposed by ASIC and the three directors.

It disqualified Law for six years and imposed a pecuniary penalty of $50,000, disqualified Wilson for 10 years and slapped a $20,000 fine, and disqualified Clayton for five years and imposed a similar $20,000 on him.

Law was found to have breached his duties in relation to one of the Youpla Group companies, whereas Wilson and Clayton were found to have breached their duties in relation to three companies.

In 2023, ASIC commenced proceedings against all three directors and two other directors, Ronald Pattenden and Bryn Jones, where it alleged breaches of duties as directors of Youpla Group companies, formerly known as the Aboriginal Community Benefit (or ACBF).

On 30 October 2026, the court handed down decisions where Pattenden was disqualified for 15 years and fined $250,000.

Jones (who had disputed ASIC’s claim) was also found to have breached his directors’ duties. There will be a separate hearing to determine the penalties for Jones, ASIC said.

ASIC’s case alleged that between September 2017 and November 2018:

• The directors and officers maintained insurance arrangements with Crown Insurance Services Limited (Crown), a Vanuatu-based company which was beneficially owned and controlled by Pattenden and Law.

• Those arrangements would have benefited Pattenden and Law and were not in the interests of the Youpla Group companies.

• Insuring with Crown opened the Youpla Group companies up to unaffordable premium increases (that occurred in September 2017). It is alleged that First Nations people continued to make premium payments to Youpla Group without being aware of the risks to the viability of the funds and their ability to meet their commitments to members.

In March 2022, the Youpla Group companies went into liquidation.

ASIC launched proceedings in the Federal Court against five former Youpla directors and officers in August 2023.

ASIC noted that the collapse of the group caused significant hardship and trauma to First Nations people, particularly given the cultural significance of funerals.

ASIC commissioner Alan Kirkland said ASIC has a particular enforcement focus on misconduct that harmed First Nations people.

“These directors failed in their responsibilities and their conduct contributed to serious harm to First Nations consumers,” he said.

“Directors have important responsibilities. The failures at Youpla demonstrate the consequences when those responsibilities are not met. This action demonstrates ASIC’s commitment to the protection of vulnerable consumers.”

ASIC will provide further comment following the conclusion of the hearing against Mr Jones.

The government established the Youpla Support program in response in 2024, with applications closing in June 2026. Payments will continue to be processed until 1 December 2026.

The ACBF Entities’ liquidation process is being managed by SV Partners.