Arnold Guettler Returned to Jail For Securities Offences

TORONTO - A resident of Simcoe county is in jail today after being arrested yesterday by the Durham Regional Police and returned to custody where he will continue serving his sentence for violating the Securities Act. Arnold Guettler was sentenced to 5 months incarceration by the Honourable Mr. Justice Babe of the Ontario Court of Justice for violating the Securities Act.

Guettler has been at large since November 27, 2002, when the Court of Appeal dismissed his appeal against conviction and sentence as abandoned and he was required to surrender into custody immediately. When he failed to surrender, a Warrant for Arrest and a Warrant for Committal were issued.

Between October 15, 1994 and January 10, 1997, Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp. (the "Defendants") raised in excess of $2 million dollars from the sale of shares and promissory notes to approximately 140 investors by means which the Court found contrary to the Securities Act.

On July 9, 2001, the Honourable Mr. Justice Babe of the Ontario Court of Justice sentenced Arnold Guettler to 5 months in jail on each of three convictions under the Securities Act. The sentences were to be served concurrently. Neo-Form Corporation and Neo-Form North America Corp. were fined $5,000 in respect of each of three convictions under the Securities Act for a total fine of $15,000 against each company.

On February 5, 2001, the Defendants were found guilty of: (1) trading in securities, namely shares and promissory notes issued by the Defendants, without being registered to trade in such securities contrary to section 25(1) of the Securities Act; (2) trading in such securities without having filed a prospectus contrary to section 53(1) of the Securities Act; and (3) making representations that the shares of Neo-Form Corporation and Neo-Form North America Corp. would be listed on a stock exchange with the intention of effecting trades in such securities contrary to section 38(3) of the Securities Act. The Defendants were found not guilty of giving undertakings as to the future value of the shares of Neo-Form Corporation and Neo-Form North America Corp. to potential investors with the intention of effecting trades in such securities contrary to section 38(2) of the Securities Act.

Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp. appealed to the Divisional Court. On May 17, 2002, the appeal against conviction and sentence was dismissed.

On the same date, May 17, 2002, Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp. sought leave to appeal to the Court of Appeal for the province of Ontario. Guettler was released on bail pending appeal on May 22, 2002.