Richard Gozdek

White Rock man charged with breaching Securities Commission order

Richard Gozdek previously admitted to illegally selling securities

A White Rock man has been charged with three counts of contravening the Securities Act after allegedly breaching an order of the B.C. Securities Commission (BCSC).

Richard Gozdek, formerly of Abbotsford, was charged following an investigation by the BCSC’s criminal investigations branch.

In a settlement agreement with the BCSC in 2013, 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.

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

ALSO SEE: B.C. trader fined $400,000, banned from capital markets

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.

As part of his 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.

It is now alleged that he failed to comply with that order in January 2015 in Abbotsford, Surrey and Vancouver.

Charges were laid last month in Abbotsford provincial court, and he made his first appearance on Dec. 20.

Just Posted

Woman found dead in Okanagan Lake identified as Surrey resident

Police ‘do not believe criminality was involved’ in the death of 29-year-old Caitlin Bradley

‘I feel ready for it’: On a BMX, Surrey man is ‘Cycling for Sobriety’ across Canada

Mat Fee will depart Halifax on May 1 to raise money and awareness for John Volken Academy

Students run blood, stem cell donor drive at Surrey’s Vaisakhi Parade

Volunteer youth group One Blood for Life aims to create a more ethnically diverse stem cell registry

Surrey prayer vigil planned to honour hundreds killed in Sri Lanka bombings

The event is set for 6:30 p.m. Monday night at Holland Park

Easter bombings a response to New Zealand attacks, says Sri Lanka minister

The Islamic State group asserted it was responsible for the nine bombings

New commemorative loonie marking ‘progress’ for LGBTQ2 people to be unveiled today

But advocates say it mistakenly suggests equality has been achieved largely as a result of government actions

B.C. VIEWS: NDP’s lawyer show is turning into a horror movie

Court actions pile up over pipelines, car insurance, care aides

Anti-SOGI activist slams ban on B.C. dad speaking out about transgender son’s case

A judge has told the father to stop publicly objecting to his son’s gender

PHOTOS: Green Party Leader Elizabeth May says ‘I do’ on Earth Day

May and John Kidder got married Monday morning in Victoria

Victims injured in Lower Mainland deck collapse ranged from 15 to 83 years old

Victim Services staff have reached out to those hurt and their families

‘Ghost restaurants’ cooked up by Joseph Richard Group to meet demand of delivered food

The new Meal Ticket Brands venture aims to ‘disrupt’ the local restaurant industry

Sri Lanka invokes war-time military powers after nearly 300 killed in Easter bombings

Sri Lanka’s minister of tourism says 39 foreign tourists were killed in the Easter Sunday attacks

Torched SUV linked to Vancouver’s fourth homicide

Manoj Kumar, 30, was found dead from gunshot wounds in the Kitsilano neighbourhood

Most Read