Former director faces prison time after collapsed company leaves clients $9m in debt

Last Thursday (30 April), Stavro D’Amore, the former director of collapsed derivatives provider Berndale Capital Securities, pleaded guilty in the Federal Court of Australia to multiple dishonesty offences, including the illegal transfer of over $680,000 in company funds.

In combination, the former director’s offences could land him in jail for up to 20 years or result in a fine of up to $2.2 million (6,700 penalty units).

In November 2018, ASIC cancelled D’Amore and his company’s AFSLs and banned him from providing financial services for six years. That December, the corporate watchdog sought freezing orders against Berndale, and the company was wound up in October 2019.

After Berndale collapsed, its clients were collectively owed over $8.9 million, ASIC said.

The regulator said that D’Amore transferred company funds to benefit himself and other associates, including the $680,000 that was illegally transferred, prior to and in the days following the cancellation of his licenses.

D’Amore pleaded not guilty to all charges in September 2024. Subsequently, in April 2026, he pleaded guilty to three ‘rolled up’ charges combining multiple offences.

These included dishonestly using his position as a director, dishonest conduct in the course of carrying on a financial services business and authorising a false and misleading statement in a document submitted to ASIC.

The regulator added that Berndale had been required to maintain a minimum net tangible asset level of at least $1 million or 10 per cent of its average revenue, whichever was greater. It was also required to lodge audited financial reports.

However, it found that the relevant overseas funds and accounts either did not exist or were grossly inaccurate.

ASIC said its investigation arose from its work into retail over-the-counter providers, which sought to curb consumer harm caused by highly complex and risky products offered to the public.

D'Amore faces maximum penalties of 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 carrying on a financial services business, and 200 penalty units or imprisonment for five years, or both, for making false or misleading statements in documents submitted to ASIC.

His sentencing hearing is scheduled for 2 July 2026.