Former Berndale director pleads guilty

A former director of collapsed derivatives provider Berndale Capital Securities has pleaded guilty to multiple dishonesty offences, including the misuse of nearly $700,000 in company funds.

Stavro D'Amore admitted to three combined charges before the Federal Court, covering breaches of directors' duties, dishonest conduct in financial services, and providing false or misleading information to the regulator.

The charges follow earlier action taken by regulators, with both D'Amore and fellow former director Daniel Kirby accused in 2023 of misusing more than $1 million in Berndale funds.

The court heard D'Amore transferred $681,496.98 between 2017 and 2018, funds he knew were largely sourced from retail client deposits. Former clients of the firm are still owed more than $8.9 million.

The case stems from the collapse of Berndale, a Melbourne-based provider of over-the-counter derivates, which had its license cancelled by ASIC in 2018.

ASIC identified multiple compliance failures as the time, including concerns about financial reporting, governance and the firm's ability to meet minimum capital requirements. In the lead-up to, and immediately following, the licence cancellation, D'Amore transferred company funds for personal benefit and to related parties.

Regulators later moved to freeze the company's assets, with Berndale and its associated entities ultimately wound up in 2019. The misconduct forms part of broader regulatory crackdown on retail OTC derivatives providers, an area long scrutinised due to the complexity and risk of products offered to everyday investors.

D'Amore had initially pleaded not guilty after previously being charged in 2023 but has now admitted to the offences. He faces significant penalties, including potential imprisonment.

The matter has been referred by ASIC and is being prosecuted by the Commonwealth Director of Public Prosecutions. A sentencing hearing is scheduled for 2 July 2026.