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

Crashes pile up as snow blankets Surrey

Up to 10 centimetres of snow is in the forecast

How much does your city spend per person on snow removal?

Black Press Media compares 2018 ice and snow removal budgets of various Lower Mainland communities

B.C. BUDGET: Surplus $374 million after bailouts of BC Hydro, ICBC

Growth projected stronger in 2020, Finance Minister Carole James says

Surrey pastor in concert with songs from her new ‘Psalms for a Peaceful Heart’ CD

‘Incredible’ church sanctuary in Whalley a stage for Lori-Anne Boutin-Crawford’s music

Plan to redevelop former Surrey motel site too dense, says Coun. Pettigrew

Pettigrew: ‘We need to build liveable community with green spaces… not massive zones that are densified’

VIDEO: 8 things you need to know about the 2019 B.C. budget

Surplus of $247 million with spending on children, affordability and infrastructure

Ex-Langley spiritual leader cleared of stock trading allegations

Investors allegedly lost $740,000 investing through a local religious organization.

‘Bullet missed me by an inch’: Man recounts friend’s killing at Kamloops hotel

Penticton man witnessed Summerland resident Rex Gill’s murder in Kamloops

B.C. BUDGET: Income assistance raise still leaves many below poverty line

$50 per month increase included in funding for poverty and homelessness reduction

B.C. BUDGET: Indigenous communities promised billions from gambling

Extended family caregiver pay up 75 per cent to keep kids with relatives

B.C. BUDGET: New benefit increases family tax credits up to 96 per cent

BC Child Opportunity Benefit part of province’s efforts to reduce child poverty

B.C. BUDGET: Carbon tax boosts low-income credits, electric vehicle subsidies

Homeowners can get up to $14,000 for heating, insulation upgrades

B.C. man survives heart attack thanks to Facebook

A Princeton man suffered a heart attack while at an isolated property with no cell service

Abbotsford man sues Maxime Bernier’s People’s Party over trademark

Satinder Dhillon filed application for trademark same day Maxime Bernier announced the new party

Most Read