Ex-director of an FX/CFD broker Berndale Capital pleads guilty six years after the company’s collapse

Daniel Kirby, the former director of Berndale Capital, recently pleaded guilty to multiple charges of financial misconduct. The collapsed FX and CFD broker’s director decided to admit his guilt six years after the business went under.

Berndale Director Pleads Guilty Six Years Later

According to Australian authorities’ announcement published earlier today, September 18, Kirby entered his plea earlier this week in the Melbourne Magistrates’ Court. The former director of Berndale Capital admitted to one count each of dishonest conduct related to financial service, dishonest use of his position, and providing misleading or false information to auditors.

As mentioned, Kirby pleaded guilty nearly six years after the Australian Securities and Investment Commission (ASIC) canceled his company’s financial license in November 2018. At the time, the regulator explained the move by citing compliance failures and inadequate staff training.

ASIC also stated that Kirby transferred the company funds illegally, and for personal benefit. Some of the funds were also shared with associates, both before and after the license was canceled. In fact, some of the transfers took place within hours after the regulators took action.

Furthermore, Australian authorities alleged that the platform’s former official provided false documentation to the auditor who inspected the firm’s overseas bank account balances. The accounts provided for inspection were either nonexistent or contained less money than what was reported. 

By doing so, Kirby and his firm violated requirements to maintain minimum asset levels, as per Australian regulations. ASIC commented: “Berndale’s Australian financial services license required it to maintain a minimum level of net tangible assets of at least the greater of $ 1 million or 10% of its average revenue. The relevant overseas funds and accounts either did not exist or were grossly inaccurate.”

Kirby And A Fellow Director Worked Together At Another Broker

Kirby’s case is now approaching sentencing, which will be conducted by the Federal Court of Australia. The initial appearance is scheduled to take place on September 30, and the move will also mark the first ASIC prosecution to proceed in the Federal Court following the recent leglslative changes regarding the court’s jurisdiction over corporate criminal matters.

It is also worth noting that, while Kirby decided to plead guilty, another former Berndale director charged alongside him, Stavro D’Amore, decided to plead not guilty. D’Amore has been committed to stand trial. Previously, he was banned from providing financial services for six years, back in 2018. 

Before getting involved with the company, D’Amore was associated with another broker known as FXTG, which came under similar scrutiny by the Australian regulators. Some reports even claim that the company owes $2 million to its investors. Coincidentally, Kirby was also involved with FXTG, acting as its Chief Operations Officer.