Former Youpla directors disqualified and fined over duty breaches

Three former Youpla Group directors have been disqualified from managing corporations and ordered to pay penalties after the Federal Court found they breached their directors’ duties. The orders, approved following agreement between the Australian Securities and Investments Commission (ASIC) and the directors, impose a six-year disqualification and $50,000 penalty on Jonathan Law, a 10-year disqualification and $20,000 penalty on Michael Wilson, and a five-year disqualification and $20,000 penalty on Geoffrey Clayton. The findings against Law relate to one Youpla Group company, while Wilson and Clayton were found to have breached their duties in relation to three companies. ASIC began proceedings in 2023 against the three men and former directors Ronald Pattenden and Bryn Jones, alleging breaches of duty at companies formerly known as the Aboriginal Community Benefit Fund (ACBF). ASIC’s case alleged that, between September 2017 and November 2018, directors and officers maintained insurance arrangements with Crown Insurance Services, a Vanuatu-based company beneficially owned and controlled by Pattenden and Law. ASIC alleged the arrangements were not in the interests of the Youpla companies and left them vulnerable to unaffordable premium increases, while members continued paying premiums unaware of risks to the funds’ viability and their ability to meet commitments. The Youpla companies entered liquidation in March 2022. In a separate decision on 30 October 2026, Pattenden was disqualified for 15 years and fined $250,000. Jones was found to have breached his duties after disputing ASIC’s claim; a separate hearing will determine any penalty. ASIC Commissioner Alan Kirkland said misconduct harming First Nations people remained an enforcement priority. Youpla’s funeral insurance funds were marketed predominantly to Indigenous Australians, and the group’s collapse caused significant hardship. The government established the Youpla Support Program in 2024; applications closed on 30 June 2026, with payments scheduled to continue being processed until 1 December 2026.