Convicted securities offender Michael Hills has breached his conditional sentence and will serve time in jail.

Michael Hills, sole director and officer of TelAlert Inc., was convicted in Calgary Provincial Court in November 2001 of illegally selling shares of TelAlert Inc. and making misrepresentations to investors and to the Alberta Securities Commission.

Hills was given a six-month conditional sentence, the first Alberta case of imprisonment for a Securities Act offence since prosecutions were taken over by ASC staff.

In Provincial Court Wednesday, Hills was found to have breached his conditional sentence on two separate occasions. His conditional sentence was terminated and he was taken into custody to serve the remainder of his term in jail. He is scheduled to be released in June 2002.

In her sentencing, Judge Hamilton accepted the submissions of ASC legal counsel that Hills had no apparent regard for the law.

Hills continues to be subject to a 10 year cease trade order, a 10 year denial of all exemptions under the Securities Act and a 10 year director and officer ban.