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

Abbotsford’s Ying Chun Chen recently won a $1-million prize with Lotto 6/49. (Submitted)
Abbotsford’s Ying Chun Chen recently won the $1-million prize in a Lotto 6/49 draw. (Submitted)
Abbotsford’s Ying Chun Chen wins Lotto 6/49 $1-million prize

Ticket was purchased at Abbotsford’s FreshCo for the March 6, 2021 draw

Photo collage of loved ones lost to substance use and overdose. (Photo courtesy Moms Stop The Harm)
B.C. overdose deaths still rising five years after public health emergency declared

Moms Stop the Harm calls on B.C. to provide safe supply in response to deadly illicit drug use

Todd Richard recently released “Green and Blue,” a heartfelt country ballad thanking the frontline workers battling against the pandemic. (Screenshot/ Todd Richard)
Harrison country artist Todd Richard releases ‘Green and Blue,’ a tribute to frontline workers

Richard’s new single has been viewed more than 3,000 times on his YouTube channel

Kao Macaulay has been charged in relation to a home break-in on March 30 in Abbotsford in which five kittens were stolen. (Facebook photo)
Former Chilliwack man charged with theft of 5 newborn kittens in Abbotsford

Prolific offender Kao Macaulay, 23, accused of breaking into home on March 30

Workers were on scene to clean up the oil spill in Abbotsford at Trans Mountain Pipeline’s Sumas pump station in June 2020. (File photo by Shane MacKichan)
TSB releases final report on June 2020 oil spill in Abbotsford

Transportation Safety Board says pipeline fitting to blame for spill of up to 190K litres

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has restricted indoor dining at all restaurants in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 indoor dining, drinking ban extending into May

Restaurant association says patio rules to be clarified

Titanic was the largest and most luxurious ship in the world. Photo provided and colourized by Jiri Ferdinand.
QUIZ: How much do you know about the world’s most famous shipwreck?

Titanic sank 109 years ago today, after hitting an iceberg

In a 2019 photograph, Yin Yin Din held a picture of her brother Kyaw Naing Din, 54, and her late father Hla Din who passed away in 2014, during a trip to Victoria. (The News files)
Family of B.C. man killed by cop appeals to Attorney General for help

The Din family want B.C. Attorney General David Eby to forward their case to Crown

B.C. Premier John Horgan speaks at the B.C. legislature. (B.C. government)
Tougher COVID-19 restrictions in B.C., including travel, still ‘on the table’: Horgan

John Horgan says travel restrictions will be discussed Wednesday by the provincial cabinet

Protesters occupied a road leading to Fairy Creek Watershed near Port Renfrew. (Submitted photo)
B.C. First Nation says logging activist interference not welcome at Fairy Creek

Vancouver Island’s Pacheedaht concerned about increasing polarization over forestry activities

Flow Academy is not accepting membership applications from anybody who has received a dose of the vaccine, according to a password-protected membership application form. (Submitted image)
B.C. martial arts gym refusing patrons who have been vaccinated, wear masks

Interior Health has already issued a ticket to Flow Academy for non-compliance with public health orders

Of 46 arrests made between March 16 and 19 at Metrotown mall in Burnaby, 27 suspected shoplifters are now facing charges. (Twitter/Burnaby RCMP)
RCMP arrest 46 people in 4 days during Metrotown shoplifting crackdown

$4,800 in stolen merchandise was recovered and returned to businesses inside of the mall

Maple Ridge's Doug Ubell caught some photographs recently that he was anxious to share, one taken while on the Trans-Canada Trail looking southwest towards the Pitt River Bridge, and another from on Golden Ears Bridge. (Special to The News)
Traffic on Golden Ears Bridge returning to pre-pandemic levels

Commuters from Greater Vancouver still driving more, taking transit less

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

Most Read