Former Berndale Capital Securities Pty Ltd (Berndale) director Stavro D'Amore has been sentenced by the Federal Court to a total effective term of three years and ten months for multiple dishonesty offences committed between 2017 and 2018. He will serve 23 months in prison as part of the sentence and was taken into immediate custody on 23 July 2026.
The Court found that Mr D'Amore improperly transferred $681,496.98 in Berndale company funds, which he knew were primarily derived from retail client deposits. Following the collapse of Berndale, former retail clients are owed more than $8.9 million. Berndale was a retail over-the-counter (OTC) derivatives provider that issued and made a market for retail OTC derivative products and collapsed in December 2018. When operating, Berndale asserted it was the fourth largest OTC business in Australia.
The misconduct also involved Mr D'Amore authorising the making of false and misleading statements in documents submitted to the Australian Securities and Investments Commission (ASIC) regarding overseas bank accounts that were said to contain Berndale funds. Berndale held an Australian financial services (AFS) licence that required it to maintain a minimum level of net tangible assets and to lodge audited financial reports. The Court found that the relevant overseas funds and accounts either did not exist or were grossly inaccurate.
Charges and legal proceedings
On 1 May 2026, Mr D'Amore pleaded guilty to three rolled up charges contrary to the Corporations Act 2001. The offences included dishonestly using his position as a director, engaging in dishonest conduct in the course of carrying on a financial services business, and authorising the making of a false and misleading statement in a document submitted to ASIC.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following an investigation and referral from ASIC. The sentencing reflects the Federal Court's assessment of the seriousness of the misconduct and its impact on investors and market integrity.
Regulatory and judicial commentary
ASIC Chair Sarah Court said Mr D'Amore had "seriously abused his position as director to enrich himself" and had authorised false statements to ASIC to conceal the true financial position of Berndale. She noted that the sentence "demonstrates the egregiousness of his misconduct" and emphasised that conduct of this type puts retail investors at serious risk and undermines trust in Australia's financial system. She added that ASIC will continue to hold to account those who engage in similar misconduct.
In delivering the sentence, Justice Abraham stated that offences of this nature "undermine the integrity of Australia's financial markets and system of corporate regulation and erode the confidence of participants in the commercial world." The judge observed that victims extend beyond those who directly lost funds to include the investing public at large.
