Collapsed CFD Broker Director Pleads Guilty to Misusing $490K Client Funds

Stavro D‘Amore, a former director of the now-collapsed CFD broker Berndale, has pleaded guilty to multiple dishonesty-related offences, including the illegal transfer of more than AU$681,000, or approximately US$490,000, in company funds between 2017 and 2018. These funds largely consisted of client deposits. Despite the developments in the case, former clients of the broker are still owed more than AU$8.9 million, equivalent to about US$6.5 million, highlighting the lasting financial impact of the firm’s collapse.

The Australian Securities and Investments Commission (ASIC) confirmed that D‘Amore pleaded guilty to three consolidated charges. These include dishonestly using his position as a company director, engaging in dishonest conduct, and authorising the submission of false and misleading information to the regulator. ASIC initially brought charges against D’Amore in mid-2023. His guilty plea follows an earlier not-guilty plea entered in September 2024, marking a significant turn in the legal proceedings. DAmore is scheduled to be sentenced on 2 July 2026 and faces the possibility of substantial financial penalties or a prison term of up to ten years under one of the charges.

Berndale, which was based in Melbourne, ceased operations in November 2018 after its Australian Financial Services licence was revoked. The regulator cited several concerns at the time, including failures to meet reporting obligations and to respond adequately to statutory notices. ASIC had also raised doubts about D‘Amore’s suitability to serve as a director. According to the regulator, the unauthorised transfers of company funds occurred both prior to and shortly after the cancellation of the licence, further intensifying concerns over governance and compliance within the firm.

In addition to DAmore, ASIC also charged another former director, Daniel Kirby, who had already pleaded guilty to similar offences in September 2024. Both individuals were previously linked to another brokerage, FXTG, which had also attracted regulatory scrutiny. Reports from 2016 indicated that FXTG allegedly owed investors around US$2 million. Kirby served as Chief Operations Officer at FXTG, further connecting the individuals involved across multiple regulatory cases.

The case underscores ongoing concerns surrounding governance failures in financial services firms and the long-term consequences for investors. While the legal process continues, many affected clients remain uncertain about the recovery of their funds, reinforcing the importance of regulatory oversight and due diligence when engaging with financial service providers.