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

South Surrey parking ticket perplexes, frustrates

Theresa Delaney predicts more people will be wrongly ticketed

55-year-old man taken to hospital after fire at Surrey RV park

Firefighters find man suffering from smoke inhalation, burns to face and hands: battalion chief

Coldest Night an event for warm hearts

Sources’ White Rock event one of 130 walkathons across Canada on Feb. 23

Guatemala mission offers hope, health

Peninsula team to visit remote villages, build a home, in Piedra Blanca

MK Delta Lands development another step closer to breaking ground

Delta needs Metro Vancouver’s okay before swapping hundreds of acres and adding it to Burns Bog

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Ontario police field complaints over Amber Alert for missing girl, 11, found dead

Some said the Amber Alert issued late Thursday for Riya Rajkumar disrupted their sleep

Former B.C. premier Gordon Campbell accused of sexual touching

Accuser went to police, interviewed by Britian’s Daily Telegraph

B.C. couple attacked with acid, slashed with knife in Vietnam

Warning, graphic images: Man has burns on 80 per cent of his body, slashed with knife

Northern B.C. First Nation clan says ancient tools found at pipeline work site

Archeologists from the Smithsonian Institute estimate one of the stones found dates back up to 3500 years

Wilson-Raybould resignation stokes anger, frustration within veterans community

Liberals have had three veterans-affairs ministers — Kent Hehr, Seamus O’Regan and Wilson-Raybould

No Center of Gravity festival in Kelowna this summer: organizers

COG organizers said the hope is to return to the Okanagan in 2020

Most Read

l -->