Richard Gozdek

Richard Gozdek

Former Abbotsford man pleads guilty to violating B.C. Securities Act

Richard Gozdek charged after failing to comply with order from B.C. Securities Commission

A former Abbotsford man now living in White Rock has pleaded guilty to one count of contravening the B.C. Securities Act.

The sentencing hearing for Richard Gozdek, 56, is scheduled to take place in Abbotsford provincial court on Dec. 23, at which time two other counts of contravening the Securities Act are expected to be stayed.

Gozdek was charged in December 2018 for failing to comply with a BC Securities Commission (BCSC) order by trading in securities, by acting in a consultative capacity in the securities market, and by engaging in investor relations activities.

In a settlement agreement with the BCSC in 2013, Gozdek agreed to pay approximately $65,000 to the BCSC, and was banned for five years from activities such as trading securities, engaging in investor relations, and acting as a consultant in the securities market.

RELATED: Former Abbotsford man charged with breaching Securities Commission order

ALSO READ: B.C. man accused of misusing $450,000 of investors’ money

At that time, Gozdek admitted that he illegally sold securities in Armadillo – a Nevada corporation that claimed to own an oil lease in Oklahoma, according to a BCSC press release at the time.

The agency said that Gozdek had never been registered to sell securities in B.C., and Armadillo had never filed a prospectus, offering memorandum or exempt distribution report in B.C.

Between December 2010 and April 2011, Armadillo sold partnership agreements to at least 26 investors in B.C. for proceeds of almost $869,000, according to the BCSC.

The agency stated that Gozdek directly solicited people to invest in the partnership agreements, raising almost $551,000 from B.C. residents.

Gozdek, through his company Sterling Financial Group, was paid a fee of just over $40,000 for the sale of the partnership agreements.

Each month Armadillo would extract and sell the amount of oil an investor purchased to a refinery on the investor’s behalf.

According to the investor’s preference, the net proceeds would either then be used to acquire title to an additional quantity of oil, or would be forwarded to the investor in the form of a production payment.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Russell Jonathon George Gurney was last seen in Chilliwack in mid-December. (RCMP photo)
RCMP ask for help to find missing Abbotsford man last seen in Chilliwack

Police and family are concerned for the well-being of Russell Jonathon George Gurney

Grade 6 students at Eugene Reimer Middle School have been participating in the Equity Backpack Project. (Submitted photo)
Equity Backpack Project in Abbotsford addresses inclusion and anti-racism

Grade 6 teacher Nerlap Sidhu says she wants students to develop ‘strong sense of self’

The UFV Cascades women’s basketball program has announced the signing of Langley’s Esther Allison and Edmonton’s Charley Arnold for 2021. (UFV Cascades photo)
Langley’s Allison, Edmonton’s Arnold signed by UFV Cascades

Women’s basketball program adds pair of recruits for 2021, reporting to Abbotsford later this year

Abbotsford’s Willow Video location will be closing at the end of the month. (Ben Lypka/Abbotsford News)
Abbotsford’s Willow Video closing

Video game, movie retailer closing up shop after more than 20 years

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Southern resident killer whales in B.C. waters. Research shows the population’s females are more negatively influenced by vessel traffic than males. (Photo supplied by Ocean Wise Conservation Association)
Female orcas less likely to feed in presence of vessel traffic: study

Research the southern resident population raises concerns over reproduction capacity

(Black Press Media files)
Transport Canada not budging on enclosed deck rules, despite calls from BC Ferries union

There have been at least 23 cases of the U.K. variant detected in Canada, four of which are in B.C.

The Elk Valley Hospital is adapting to meet the needs of patients in the Elk Valley.
One in five tests in Fernie area coming back positive: doctor

Dr Ron Clark of Elk Valley Hospital said one in five tests was returning positive for COVID-19

Ralliers gather in front of the Cityviews Village apartment building in Maple Ridge to protest attempts to evict low-income tenants by the building owner. (Ronan O’Doherty - The News)
Tenants protest pressure tactics by new landlord at Maple Ridge apartment building

Protest held in front of Cityviews Village on 223 St. Tuesday to rally against low-income evictions

Throughout December, RCMP conducted CounterAttack road checks as police worked to keep roads free of impaired drivers. (BLACK PRESS file photo)
From the “You can’t make this stuff up” file – stories from the BC CounterAttack campaign

Amusing, yes, but a reminder impaired driving affects ability to drive and to make good decisions

Snow is forecasted to appear in parts of Metro Vancouver this weekend. (Black Press Media files)
Snow forecasted for parts of Lower Mainland this weekend

Environment Canada is predicting flurries and snow from Saturday to Monday evening

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(Thesendboys/Instagram)
Video of man doing backflip off Vancouver bridge draws police condemnation

Group says in Instagram story that they ‘don’t do it for the clout’

Most Read