Stavro D’Amore, the former director of the now-defunct Melbourne-based derivatives and foreign exchange trading firm Berndale Capital Securities, has been sentenced to nearly two years in prison for a series of corporate offences linked to the company’s collapse in 2018. The Federal Court handed down a sentence of three years and 10 months, with a 23-month non-parole period, following findings that D’Amore unlawfully diverted more than $680,000 in client funds and submitted false and misleading documents to the corporate regulator.

Berndale Capital Securities went into liquidation owing clients over $8.9 million. The company’s financial services licence mandated it maintain a minimum level of assets, but the court found that D’Amore had authorised statements falsely reporting the existence of overseas bank accounts and funds that either did not exist or were grossly misstated.

In May, D’Amore entered a guilty plea on three combined charges, including dishonestly using his position as a company director, engaging in dishonest conduct while managing a financial services business, and authorising false statements submitted to the Australian Securities and Investments Commission (ASIC). His co-director, Daniel Kirby, had previously been sentenced to two years and 11 months of imprisonment last year for similar offences, with parole eligibility after 12 months under good behaviour conditions.

Justice Wendy Abraham, in delivering the sentence on July 23, emphasized the broader implications of the offences. She stated that such conduct damages the integrity of Australia’s financial markets and corporate regulatory system, eroding confidence not only for direct victims but also for the investing public at large.

ASIC Chair Sarah Court condemned D’Amore’s actions as a serious breach of trust, highlighting that he abused his position to enrich himself at the expense of Berndale’s investors while deliberately misleading regulators about the company’s financial position. Court noted that these actions threaten the safety of retail investors and undermine confidence in the country’s financial system.

The details of D’Amore’s sentencing were withheld until after the conclusion of a separate five-week criminal trial scheduled to begin in Victoria’s County Court, ensuring that the reporting of this case did not interfere with ongoing judicial proceedings.