Former Youpla Group 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 various of the Youpla Group companies.
The Federal Court today approved orders proposed by ASIC and the three directors imposing the following penalties:
| Youpla director | Period of disqualification as director | Pecuniary penalty |
|---|---|---|
|
Jonathan Glen Law |
6 years |
$50,000 |
|
Michael Wilson |
10 years |
$20,000 |
|
Geoffrey Clayton |
5 years |
$20,000 |
Mr Law was found to have breached his duties in relation to one of the Youpla Group companies, whereas Mr Wilson and Mr Clayton were found to have breached their duties in relation to three Youpla Group companies.
In 2023, ASIC commenced proceedings against Mr Law, Mr Wilson and Mr Clayton and two other directors, Ronald Pattenden and Bryn Jones, alleging breaches of duties as directors of Youpla Group companies, formerly known as the Aboriginal Community Benefit Fund (or ACBF).
The Court handed down decisions concerning Mr Pattenden and Mr Jones on 30 October 2026. Mr Pattenden was disqualified for 15 years and fined $250,000 and Mr Jones (who had disputed ASIC's claim) was found to have breached his directors' duties. There will be a separate hearing to determine the penalties that may be imposed on Mr Jones (26-264MR).
ASIC Commissioner Alan Kirkland said misconduct that harmed First Nations people was an enduring enforcement priority for ASIC.
‘These directors failed in their responsibilities and their conduct contributed to serious harm to First Nations consumers.
'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,’ Commissioner Kirkland said.
ASIC will provide further comment following the conclusion of the hearing against Mr Jones.
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Second defendant - Jonathan Law
Third defendant - Michael Wilson
Fifth defendant - Geoffrey Clayton
Background
Youpla operated several funds providing funeral insurance, predominantly 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
- those arrangements were not in the interests of the Youpla Group companies and stood to benefit Mr Pattenden and Mr Law, and
- insuring with Crown left the Youpla Group companies vulnerable to unaffordable premium increases (that occurred in September 2017), so that First Nations people continued to make premium payments to Youpla Group being unaware 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 (23-237MR).
The collapse of the Youpla Group caused significant hardship and trauma to First Nations people, noting the particular cultural significance of funerals. 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.