Federal Court fixes sentence in case involving retail over-the-counter derivatives provider
The Australian Securities and Investments Commission (ASIC) has highlighted that Stavro D’Amore – who was a director of Berndale Capital Securities Pty Ltd, Berndale Capital Securities Management Pty Ltd, and Algoplus Pty Ltd – will remain in prison for 23 months.
According to ASIC, this is part of a total effective sentence of three years and 10 months, imposed for dishonesty offences that the Federal Court found that D’Amore committed from 2017–18.
“The sentence demonstrates the egregiousness of his misconduct,” said Sarah Court, ASIC chair, in a media release. “Conduct of this type puts retail investors at serious risk and undermines trust in Australia’s financial system.”
In Commonwealth Director of Public Prosecutions v D’Amore [2026] FCA 972, D’Amore pleaded guilty to the following offences, with each being a rolled-up charge:
The Federal Court noted that the first and third charges involved the misappropriation of funds.
In its media release, ASIC provided the background on the proceedings involving Berndale, a retail over-the-counter (OTC) derivatives provider that claimed that it was the country’s fourth largest OTC business.
Berndale collapsed in December 2018. D’Amore, as well as former director Daniel Kirby, faced charges on 2 June 2023.
On 16 September 2024, Kirby pleaded guilty to dishonest conduct and misuse of company funds. On 15 July 2025, he received a sentence of two years and 11 months’ imprisonment, to be released after 12 months on a $1,000 recognisance if he could observe good behaviour for three more years.
Regarding D’Amore, ASIC explained that he improperly transferred company funds of $681,496.98, which he was aware mainly originated from retail client deposits, with former clients entitled to $8.9m.
“D’Amore seriously abused his position as director to enrich himself and he authorised false statements to ASIC to hide the true financial position of the company he had taken money from at the expense of Berndale investors,” Sarah Court said in ASIC’s media release.
The Federal Court convicted D’Amore of the three charges.
The court sentenced D’Amore to 17 months’ imprisonment, commencing on 23 July 2026, on the first charge; 20 months’ imprisonment, beginning on 22 July 2027, on the second charge; and 20 months’ imprisonment, starting on 21 September 2028, on the third charge.
The court imposed a single non-parole period of 23 months under s 19AB(1) of the Crimes Act 1914 (Cth).
In fixing D’Amore’s sentence, the Federal Court acknowledged the offences’ seriousness and their impact on the companies’ clients and the broader financial markets.
Over almost two years, the court found that D’Amore deliberately and blatantly disregarded the regulatory obligations of Australian financial services licence (AFSL) holders under the Corporations Act, his fiduciary obligations as a director, and the clients’ interests.
The court noted that D’Amore was a significant part of the Berndale companies’ management structure, the responsible manager under Berndale’s AFSL beginning on 22 November 2011, and the key person starting on 31 July 2012.
The court held that D’Amore:
Here are some other decisions by the Federal Court of Australia involving ASIC.
After ASIC’s investigation, the Federal Court issued 13 July 2026 orders to wind up an unregistered managed investment scheme pursuant to s 601EE(2) of the Corporations Act 2001 (Cth) and the second defendant in the proceeding under s 461(1)(k) of the Corporations Act.
The Federal Court made a 26 June 2026 decision agreeing to hear ASIC’s case against a mining corporation separately from and subsequently to ASIC’s case against a director and a senior manager on liability for alleged contraventions of the Corporations Act 2001 (Cth).
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