Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp.

Toronto - 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 are 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 Honourable Mr. Justice Babe of the Ontario Court of Justice found Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp. (the "Defendants") 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.

Between October 15, 1994 and January 10, 1997, 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.

Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp. have served a notice of appeal in respect of these convictions. No date for the hearing of the appeal has been scheduled.

 

 

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