Tonaquint, Inc.

The investigation focuses on whether John M. Fife and Tonaquint, Inc. made false and/or misleading statements and/or omitted material information to issuers in connection with its' investments into OTC Markets, NASDAQ or NYSE companies. Fife and Chicago Venture are the subject of a Securities and Exchange Commission enforcement action commenced in the United States District Court for the Northern District of Illinois. The SEC's complaint alleges that between 2015 and 2020, Fife, and his companies, Chicago Venture Partners, L.P., Iliad Research and Trading, L.P., St. George Investments LLC, Tonaquint, Inc., and Typenex Co-Investment, LLC, regularly engaged in the business of purchasing convertible notes from penny stock issuers, converting those notes into shares of stock at a large discount from the market price, and selling the newly issued shares into the market at a significant profit. The SEC alleges that Fife and his companies engaged in more than 250 convertible transactions with approximately 135 issuers, sold more than 21 billion newly-issued penny stock shares into the market, and obtained more than $61 million in profits. The complaint also alleges that, at the time of the conduct, the Defendants were not registered with the SEC as dealers, in violation of the mandatory registration provisions of the federal securities laws. It further alleges that by failing to register, the Defendants avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory inspections and oversight, financial reporting requirements, and maintaining books and records.

 

The Securities Act specifically voids these transactions.

Press Release

INVESTIGATION ALERT: The Basile Law Firm P.C. Announces it is Investigating Claims Against John M. Fife and Tonaquint, Inc. and Encourages Issuers with Losses of $500,000 or more to Contact the Firm

New York, April 6, 2021 — The Basile Law Firm P.C., a national securities litigation and public company restructuring firm with offices in Dallas, New York and Naples, announces that it is investigating claims on behalf of issuers against John M. Fife and Tonaquint, Inc.  (“TNQ”) for possible securities fraud violations by engaging in the business of buying and selling securities without registering with the SEC as a dealer.

The investigation focuses on whether CVP issued false and/or misleading statements and/or omitted material information pertinent to their investments into issuers trading on the OTC Markets, NASDAQ and the NYSE.

The SEC's complaint, alleges that between 2015 and 2020, Fife, and his companies, Chicago Venture Partners, L.P., Iliad Research and Trading, L.P., St. George Investments LLC, Tonaquint, Inc., and Typenex Co-Investment, LLC, regularly engaged in the business of purchasing convertible notes from penny stock issuers, converting those notes into shares of stock at a large discount from the market price, and selling the newly issued shares into the market at a significant profit. The SEC alleges that Fife and his companies engaged in more than 250 convertible transactions with approximately 135 issuers, sold more than 21 billion newly-issued penny stock shares into the market, and obtained more than $61 million in profits. The complaint also alleges that, at the time of the conduct, the Defendants were not registered with the SEC as dealers, in violation of the mandatory registration provisions of the federal securities laws. It further alleges that by failing to register, the Defendants avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory inspections and oversight, financial reporting requirements, and maintaining books and records.

The typical result of an issuer selling convertible notes to a toxic convertible note lender is a depressed stock price and an increase in the shares issued and outstanding after conversions of debt into stock at fixed percentage discounts. Such conversions of debt into stock and subsequent sales of that stock by the funder drives down the market capitalization of the company resulting in loss of shareholder value.

 

If the funder is required to register as a dealer under the Exchange Act and fails to, the Exchange Act voids those transactions .

We encourage you to contact attorney Mark R. Basile, Esq. of The Basile Law Firm P.C. , 390 N. Broadway, Ste., 140 Jericho, New York 11753 at 516-455-1500 x110 to discuss your rights free of charge. You can also reach us through the firm’s website at www.thebasilelawfirm.com, or by email at mark@thebasilelawfirm.com.

The Basile Law Firm P.C. represents issuers around the world focusing on securities litigation lawsuits and public company restructuring.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable laws and rules of ethics.

CONTACT:

The Basile Law Firm P.C.

Mark R Basile, Esq.

516-455-1500 x110

mark@thebasilelawfirm.com

eric@thebasilelawfirm.com

joey@thebasilelawfirm.com

www.thebasilelawfirm.com

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