VANCOUVER, June 18, 2013 /CNW/ - In a settlement agreement with the
British Columbia Securities Commission, Richard Gozdek has admitted
that he illegally sold securities in Armadillo, a Nevada corporation
that claims to own an oil lease in Oklahoma. Gozdek has never been
registered to sell securities in B.C., and Armadillo has never filed a
prospectus, offering memorandum or exempt distribution report in B.C.
The agreement states that between December 2010 and April 2011,
Armadillo sold partnership agreements to at least 26 investors in B.C.
for proceeds of approximately $868,789. Gozdek directly solicited
persons to invest in the partnership agreements, raising $550,778 from
B.C. residents. Gozdek, through his company Sterling Financial Group,
was paid a fee of approximately $40,062 for the sale of the partnership
Under a partnership agreement, an investor received title to an amount
of crude oil from Armadillo's lease in Oklahoma related to the amount
of money invested. 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 investors' 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
Gozdek admits that by trading and distributing securities without being
registered and without having filed a prospectus, he broke securities
laws relating to both registration and prospectus requirements.
As part of the agreement, Gozdek has given an undertaking to pay
$65,062.30 to the BCSC. Additionally, he must resign any position that
he holds as a director or officer of any issuer, registrant, or
investment fund manager. For a period of five years, Gozdek is banned
from trading in securities (with limited exceptions), and he is
prohibited from becoming or acting as a registrant, investment fund
manager, promoter, or director or officer of any issuer, registrant or
investment fund manager. He is also prohibited, for the same period,
from acting in a management or consultative capacity in connection with
the securities market, and from engaging in investor relations
activities. Gozdek has agreed to comply fully with the Securities Act,
securities rules and any applicable regulations.
The agreement notes that on July 29, 2011, the Ontario Securities Commission issued a notice of hearing and
temporary cease trade order against Armadillo and others for alleged
unregistered activity in Ontario.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the settlement agreement on our website www.bcsc.bc.ca by typing Richard Gozdek, 0894563 B.C. Ltd, Armadillo Energy Inc. or
2013 BCSECCOM 224 in the search box. Information regarding
disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial
securities regulators, the Investment Industry Regulatory Organization
of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information:
For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604-899-6854 or 1-800-373-6393 (toll free).