Richard Gozdek

White Rock man sentenced for violating B.C. Securities Act

Richard Gozdek charged in 2018 after failing to comply with 2013 order

A former Abbotsford resident now living in White Rock has been ordered 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. The $15,000 penalty includes $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, acting in a consultative capacity in the securities market and engaging in investor-relations activities.

READ MORE: White Rock man charged with breaching Securities Commission order

In a settlement agreement 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.

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

Just Posted

COLUMN: Cyber attacks are devastating, but preventable

There are some very simple things we can do to protect ourselves online, says DPD Chief Neil Dubord

Indecent act reported in North Delta

Police received a report of a man touching himself in the park next to the Mackie library on Jan. 23

‘Our Surrey Vision’ report to be made public Thursday

Community-engagement project launched by Downtown Surrey Business Improvement Association last year

Seniors agility program now available to North Delta residents

Delta Gymnastics is expanding its popular Seniors Can Move program thanks to provincial grant

Two men charged with first-degree murder in 2019 Surrey case

Two men charged with first-degree murder in killing of Andrew Baldwin, 30, in Surrey

VIDEO: Canada’s first presumptive case of coronavirus officially confirmed

Both patient and wife arrived on a China Southern Airlines flight after having been to Wuhan

Ski lift closed at B.C. mountain over alleged actions of former employee

‘We are actively investigating and dealing with the actions of a former employee,’ said the resort

VIDEO: Music stars pay tribute to Kobe Bryant at Grammys award show

Music artists including Billy Ray Cyrus, Rick Ross and Kirk Franklin paid tribute to Bryant

John Lennon’s psychedelic Rolls-Royce on display at Royal BC Museum

The classic car has been a favourite for Beatles fans from Victoria and internationally

Coastal GasLink stresses pipeline ‘on a schedule’ as B.C. appoints liaison for Wet’suwet’en

670-kilometre pipeline is schedule to be completed by end of 2023

Furstenau flays NDP as she launches B.C. Green Party leadership bid

LNG, Site C dam wrong for environment, Cowichan MLA says

Woman guilty of dangerous driving crash that left Saanich girl, then 11, unresponsive

Nikirk guilty of one count of dangerous driving causing bodily harm

Pregnant B.C. woman stuck in Wuhan, the epicentre of coronavirus outbreak

Woman is due to give birth in Wuhan, China unless she can get out

Victoria-area wolf tranquilized after being seen running around neighbourhood

Officials say wolf unharmed during its ‘arrest’

Most Read