Former Youpla Group CEO Bryn Jones and director Ronald Pattenden have been found to have breached their duties as directors of Youpla Group companies.
Mr Pattenden has been ordered to pay $250,000 in penalties and has been disqualified from managing corporations for 15 years, as proposed by ASIC and Mr Pattenden.
Following a contested liability hearing in February 2026, the Court found Mr Jones breached his duties as a director.
A separate hearing, on a date to be fixed, will determine what penalties Mr Jones will face.
ASIC commenced proceedings in 2023 alleging breaches of directors’ duties relating to Youpla (formerly the Aboriginal Community Benefit Fund (ACBF)) against Mr Jones, Mr Pattenden and three other directors: Jonathan Law, Michael Wilson and Geoffrey Clayton.
The decisions in respect of Mr Law, Mr Wilson, and Mr Clayton are reserved.
ASIC Chair Sarah Court said tackling misconduct targeting First Nations people was an enduring enforcement priority for ASIC.
‘ASIC has taken decisive action to ensure those responsible for serious governance failures and director misconduct that harmed First Nations people are held to account.
‘These breaches went to the heart of trust and responsibility in the First Nations community.
‘ASIC is committed to protecting vulnerable consumers who are put at risk,’ the Chair said.
ASIC will provide further comment following the conclusion of the hearing against Mr Jones, as well as the decisions in respect of Mr Law, Mr Wilson, and Mr Clayton.
Background
Youpla operated several funds providing funeral insurance, mostly marketed to indigenous Australians. ASIC’s case has 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 Mr Pattenden and Mr Law,
- that those arrangements were not in the interests of the ACBF Entities and stood to benefit Mr Pattenden and Mr Law, and that
- insuring with Crown left the ACBF Entities vulnerable to unaffordable premium increases (that occurred in September 2017), so that First Nations people continued to make premium payments to ACBF being unaware of the risks to the viability of the funds and their ability to meet their commitments to members.
In March 2022 the ACBF Entities went into liquidation.
ASIC launched proceedings in the Federal Court against five former Youpla directors and officers in August 2023 (23-237MR).
The collapse of the Youpla Group caused significant hardship and trauma to First Nations people, noting the particular cultural significance of funerals to First Nations People. In response the Government established the Youpla Support Program in 2024. Applications for this program closed on 30 June 2026, with payments continuing to be processed until 1 December 2026.
The ACBF Entities liquidation process is being managed by SV Partners. If you need more information about the liquidation and the distribution of funds visit the SV Partners website: www.svpartners.com.au/Youpla.