Three Youpla directors banned and fined over collapsed funeral fund

Three former directors of the collapsed Youpla Group, which was previously known as the Aboriginal Community Benefit Fund (ACBF), have been banned from managing corporations and ordered to pay a combined $90,000.

The Federal Court, in a ruling by Justice Geoffrey Kennett, ordered former director Jonathan Law to pay the Commonwealth $50,000 and disqualified him for six years. Director Michael Wilson was ordered to pay $20,000 and disqualified for 10 years. Director Geoffrey Clayton was ordered to pay $20,000 and disqualified for five years. The three were also ordered to pay a combined $17,000 towards the plaintiff's costs.

The court found that the directors failed to carry out their duties with the care and diligence expected of them, failed to manage conflicts of interest, and caused detriment to members of the fund.

The orders followed an October judgment requiring founder Ron Pattenden to pay A$250,000 and banning him for 15 years. Pattenden acknowledged breaches in a settlement with ASIC. Former chief Bryn Jones was also found to have breached directors' duties after a contested February hearing; he denied knowing about premium increases. His penalty remains for a later hearing.

ASIC began proceedings against five former directors and officers in August 2023. It alleged they maintained arrangements with Vanuatu-based Crown Insurance, owned and controlled by Pattenden and Law, rather than acting in the best interests of the funds and their members. Breaches between 2017 and March 2019 could attract a maximum A$200,000 each.

For decades the business targeted Indigenous families, including people with limited English or literacy, using Aboriginal-flag colours, children's toys and colouring books, community events and door-to-door selling. Its collapse in March 2022 left more than 13,000 people without funeral funding. Some families resorted to crowdfunding or left bodies in morgues while finding money.

Its licence to sell new products was withdrawn after the 2018 banking royal commission exposed its conduct. ASIC raised solvency concerns in 2021. A September 2023 judgment imposed a A$1. 2 million fine for misleading people into expecting a lump sum when only documented funeral expenses would be reimbursed. The liquidated business avoided paying millions more in July 2025 fines.

A federal support package of A$97 million was announced in February 2024. Processing of remaining victim payments is due to continue until 1 December 2026. Eligible people can choose a funeral bond or a cash payment worth 60 per cent of their policy value.

Illustrative funeral flowers and coffin, not a Youpla member's funeral or a depiction of Aboriginal funeral customs.