Former director of collapsed retail over-the-counter (OTC) derivatives provider Berndale Capital Securities Pty Ltd (Berndale), Stavro D'Amore, has pleaded guilty to multiple dishonesty offences, including the illegal transfer of $681,496.98 in company funds between 2017 and 2018.
Mr D'Amore knew that the company funds were primarily derived from retail client deposits. Former Berndale clients are owed in excess of $8.9 million.
Mr D'Amore appeared before the Federal Court of Australia yesterday and pleaded guilty to three 'rolled up' charges which combine multiple offences including:
- dishonestly using his position as a director contrary to s 184(2) of the Corporations Act 2001 (Corporations Act)
- dishonest conduct in the course of carrying on a financial services business contrary to s 1041G and 1311(1) of the Corporations Act, and
- authorising the making of a false and misleading statement in a document submitted to ASIC contrary to ss 1308(2) and 1311(1) of the Corporations Act.
Mr D'Amore had previously pleaded not guilty to all charges following his committal proceedings in September 2024.
ASIC banned Mr D'Amore from providing financial services for six years and cancelled Berndale's Australian financial services (AFS) licence in November 2018 (18-363MR).
The matter is listed for a sentence hearing on 2 July 2026.
The matter is being prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from ASIC.
Background
Berndale was a Melbourne-based financial services business that issued and made a market for retail OTC derivative products.
On 22 November 2018, ASIC cancelled Berndale's AFS licence due to multiple concerns, including failures to comply with reporting obligations and statutory notices, and concerns that Mr D'Amore was not adequately trained or competent to provide financial services.
Prior to, and in the days following the licence cancellation, Mr D'Amore transferred Berndale company funds to benefit himself and other associates and entities.
In December 2018, ASIC sought freezing orders against Berndale and subsequently the appointment of receivers and managers. In October 2019, Berndale and its associated entities were wound up.
Berndale's AFS licence required it to maintain a minimum level of net tangible assets of at least the greater of $1million or 10% of its average revenue, and to lodge audited financial reports. The relevant overseas funds and accounts either did not exist or were grossly inaccurate.
ASIC's investigation into Berndale arose from ASIC's work into retail OTC providers and the consumer harm caused by highly complex and risky products offered to the public.
The maximum penalties for Mr D'Amore's misconduct are:
- 2,000 penalty units or 5 years imprisonment for dishonestly using his position as a director
- 4,500 penalty units or 10 years imprisonment for dishonest conduct in the course of carrying on a financial services business, and
- 200 penalty units or imprisonment for 5 years, or both, for making false or misleading statements in documents submitted to ASIC.
Mr D'Amore was charged on 2 June 2023, at the same time as former director Daniel Kirby (23-143MR).
On 16 September 2024, Mr Kirby pleaded to dishonest conduct and misuse of company funds (24-204MR).
On 15 July 2025, Mr Kirby was sentenced to 2 years and 11 months imprisonment, to be released after 12 months on a recognisance of $1,000 on the condition that he be of good behaviour for a further 3 years (25-135MR).
