Former Berndale director Stavro D'Amore has pleaded guilty to multiple dishonesty offences relating to the misuse of client funds at the now-collapsed contracts for difference (CFD) broker. The Australian Securities and Investments Commission (ASIC) confirmed that the offences involved the illegal transfer of more than AU$681,000 in company funds, primarily client deposits, between 2017 and 2018.
ASIC stated that D'Amore pleaded guilty to three rolled-up charges. These comprise dishonestly using his position as a director, engaging in dishonest conduct, and authorising the making of a false and misleading statement in a document lodged with the regulator. Under one of these charges, D'Amore now faces a heavy monetary penalty or a prison sentence of up to 10 years.
Details of the Misconduct and Legal Proceedings
The illegal transfers occurred both before and in the days following the cancellation of Berndale's Australian Financial Services (AFS) licence. The funds involved totalled more than AU$681,000, with ASIC noting that they were primarily derived from client deposits. Clients of the collapsed broker remain owed more than AU$8.9 million.
ASIC formally initiated criminal proceedings against D'Amore in mid-2023 by filing charges. The latest guilty plea follows an earlier not-guilty plea entered by D'Amore in September 2024. His sentencing is scheduled for 2 July 2026.
Berndale Collapse and Related Charges
Melbourne-based Berndale collapsed in November 2018 after ASIC cancelled its AFS licence. The cancellation followed multiple concerns, including failures to comply with reporting obligations and failures to respond to statutory notices. The misconduct involving the illegal transfer of company funds spanned the period leading up to the cancellation and the days immediately after the licence was revoked.
Alongside D'Amore, ASIC also brought charges against another Berndale director, Daniel Kirby. Kirby previously pleaded guilty to similar charges in September 2024. The regulator has not disclosed further details on Kirby's case in this announcement, but his plea forms part of the broader regulatory and enforcement response to the collapse of Berndale and the losses suffered by its clients.
