First Nations benefit fund executives breached duties: Court

The Federal Court found that former Youpla Group chief executive Bryn Jones and director Ronald Pattenden breached their duties as directors.

ASIC commenced proceedings in 2023 alleging breaches of directors' duties relating to Youpla Group - formerly the Aboriginal Community Benefit Fund (ACBF) - against Jones, Pattenden and fellow directors Jonathan Law, Michael Wilson and Geoffrey Clayton.

Youpla operated several funds providing funeral insurance, including ACBF Funeral Plans.

ASIC alleged that between September 2017 and November 2018, the directors maintained insurance arrangements with Crown Insurance Services, a Vanuatu-based company beneficially owned and controlled by Pattenden and Law.

ASIC also found that those arrangements were not in the interests of the ACBF entities and stood to benefit Pattenden and Law, and that insuring with Crown left those entities vulnerable to unaffordable premium increases.

As a result, 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 July 2025, ACBF Funeral Plans was ordered to pay a $3.5 million penalty over misrepresentations the organisation was Aboriginal owned or managed when it was not. The penalty was in addition to the $1.2 million fine imposed in September 2023 for misleading consumers over lump sum payments.

Youpla Group and ACBF Funeral Plans have been in liquidation since 2022.

Following the October 30 hearing, Pattenden was ordered to pay $250,000 in penalties and has been disqualified from managing corporations for 15 years, as agreed by both ASIC and Pattenden.

Meanwhile, the court also found Jones breached his duties as a director, and his penalties will be determined followed by a hearing in the near future.

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," Court said.

"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 decisions in respect of Law, Wilson and Clayton have been reserved. ASIC said it will comment upon the conclusion of their hearing.