VANCOUVER, BC, Jan. 20,
2022 /CNW/ - A British Columbia Securities Commission
(BCSC) panel has imposed a reciprocal order against a
B.C. man who pleaded guilty in provincial court to breaching a BCSC
order by trading in securities.
The panel banned Richard Gozdek
from the market for two years, finding that his "conduct
demonstrates a carelessness for securities regulation and
Commission orders. [It] suggests that Gozdek poses a continuing
risk to investors."
As a result, Gozdek is prohibited for two years from:
- trading or purchasing any securities or derivatives, except in
one account in his own name
- relying on any exemptions set out in this Act, the regulations
or a decision
- becoming or acting as a registrant or promoter
- advising or otherwise acting in a management or consultative
capacity in connection with activities in the securities or
derivatives markets
- and engaging in promotional activities.
He must also resign any position he holds as a director or
officer of an issuer or registrant.
In 2013, the BCSC banned Gozdek from buying or selling
securities for five years after he admitted that he illegally sold
shares in Armadillo, a Nevada
corporation that claimed to own an oil lease in Oklahoma.
Then, in 2018, he was charged by the B.C. Prosecution Service
with breaching that order, following an investigation by the BCSC's
Criminal Investigations Branch.
Gozdek pleaded guilty part-way through the 2019 trial in B.C.
Provincial Court in Abbotsford.
The court found that Gozdek suggested to a woman that she might be
able to make some money by investing in Worldwide Marihuana Inc. In
emails, Gozdek persuaded her to get her husband to cash in money
from a registered savings plan, and she used that to send
$10,000 to the company.
Gozdek was sentenced by the court to one year of probation
and a $5,000 fine, and was ordered to
pay $10,000 in restitution to the
victim.
In imposing the reciprocal order, the BCSC panel stated that
breaching a Commission order "can demonstrate to the capital
markets that enforcement may not be effective. As a result, the
public's trust in the capital markets is eroded." However, the
panel also noted that the underlying conduct was almost six years
ago, and there is no evidence of other misconduct since, nor was
Gozdek enriched by his conduct.
About the British Columbia Securities Commission
(www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent
provincial government agency responsible for regulating capital
markets in British Columbia
through the administration of the Securities Act. Our
mission is to protect and promote the public interest by
fostering:
- A securities market that is fair and warrants public
confidence
- A dynamic and competitive securities industry that provides
investment opportunities and access to capital
Learn how to protect yourself and become a more informed
investor at www.investright.org
SOURCE British Columbia Securities Commission