Richard Gozdek

Former Abbotsford man who breached Securities Act ordered to pay $15,000

Richard Gozdek also gets one year of probation for breaching five-year ban

A former Abbotsford man now living in White Rock has been ordered by the courts to pay a total of $15,000 after breaching an order of the B.C. Securities Commission.

Richard Gozdek, 56, was sentenced Dec. 23 in Abbotsford provincial court, where he was ordered to pay $10,000 in restitution and a $5,000 fine. He also received one year of probation.

Gozdek previously pleaded guilty to one count of contravening the B.C. Securities Act, while two other counts were stayed.

Gozdek was charged in December 2018 for failing to comply in 2015 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 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.

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.

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

RELATED: Former Abbotsford man charged with breaching Securities Commission order

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

Just Posted

Once-in-a-lifetime comet photographed soaring over Abbotsford

Photographer Randy Small captures Comet NEOWISE in early-morning sky

Abbotsford Hospice Society holds community scavenger hunt

Road to Gratitude event takes place on Sunday, July 19 by the carload

New book celebrates people and events that shaped Abbotsford

Pre-sales launched for Abbotsford – A Diverse Tapestry, to be released in fall

Man shot dead in east Abbotsford suburbs

Integrated Homicide Investigative Team called to investigate

Maple Ridge mom wants justice on two-year anniversary of daughter’s death

Megan Kinnee, 19, died July 13, 2018 after motorcycle crash in Abbotsford

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

Four-vehicle collision snarls eastbound highway traffic in Fraser Valley

Collision west of Lickman Road on Highway 1 includes three vehicles plus motorcycle

BREAKING: Amber Alert for two Quebec girls cancelled after bodies found

Romy Carpentier, 6, Norah Carpentier, 11, and their father, Martin Carpentier, missing since Wednesday

Bringing support to Indigenous students and communities, while fulfilling a dream

Mitacs is a nonprofit organization that operates research and training programs

B.C. man prepares to be first to receive double-hand transplant in Canada

After the surgery, transplant patients face a long recovery

Grocers appear before MPs to explain decision to cut pandemic pay

Executives from three of Canada’s largest grocery chains have defended their decision to end temporary wage increases

RCMP ‘disappointed’ by talk that race a factor in quiet Rideau Hall arrest

Corey Hurren, who is from Manitoba, is facing 22 charges

NHL’s Canadian hubs offer little economic benefit, but morale boost is valuable: experts

Games are slated to start Aug. 1 with six Canadian teams qualifying for the 24-team resumption of play

‘Made in the Cowichan Valley’ coming to a wine bottle near you

Cowichan Valley has the honour of being the first sub-GI outside of the Okanagan

Most Read