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

Comments are closed

Just Posted

Sport Abbotsford calls for opening of Centennial Outdoor Pool

Local sport association claims lack of consulting from City of Abbotsford in decision process

Grand opening for Abbotsford Otter Co-op set for Monday

East Abbotsford store offering number of sales and prizes at opening event

Fraser Valley Bandits, CEBL bringing pro sports back later this month

Abbotsford-based basketball team kicks off CEBL Summer Series on July 26

UFV Cascades men’s basketball signs pair of players

Burnaby’s Wilson, South Delta’s Willemsen added to team

VIDEO: Car goes off Highway 1 and into a ditch in Chilliwack

Eastbound vehicle left the highway ending in the ditch on south side of Luckakuck Way

B.C. accommodators need phone lines to light up as in-province travel given green light

Travel restrictions during the COVID-19 pandemic have decimated the tourism and hospitality industries

300 Cache Creek residents on evacuation alert due to flood risk as river rises

Heavy rainfall on Canada Day has river rising steadily, threatening 175 properties

Friends, family remember victim of Langley possible triple-homicide fire at memorial

Memorial held for one the of three found dead at a house fire in Langley Meadows last month

Family and friends mark birthday of teen who died after being discovered in Langley park

Carson Crimeni suffered an apparent drug overdose, his final moments broadcast on social media

First glimpse of Canada’s true COVID-19 infection rate expected mid-July

At least 105,000 Canadians have tested positive for COVID-19 since the coronavirus was identified

Semi and BMW collide on South Surrey highway

At least one person to hospital, both vehicles sustained significant damage

Police ramp up efforts to get impaired drivers off B.C. roads this summer

July is dedicated to the Summer CounterAttack Impaired Driving Campaign

Migrant workers stage multi-city action for full status amid COVID-19 risks

‘COVID-19 has exacerbated an existing crisis’

Okanagan school drops ‘Rebels’ sports team name, citing links with U.S. Civil War

Name and formerly-used images “fly in the face” of the district’s human rights policy, says board chair

Most Read