A federal judge in Philadelphia has approved a $1.1 million settlement in a securities fraud case brought by the U.S. Securities and Exchange Commission (SEC) against beverage startup The3rdBevco Inc. and its founder, Peter Scalise III, over a scheme involving false claims of a celebrity-backed product and the misuse of investor funds.
The SEC’s complaint, filed June 17 in the Eastern District of Pennsylvania, alleges that from 2019 to 2024, Scalise and his company defrauded investors out of $3.6 million. The allegations centered on fabricated claims that the company was launching a rum brand in partnership with a global superstar, widely understood to be Rihanna, despite having no contact with her or her management.
Scalise, 56, and The3rdBevco agreed to settle without admitting or denying the allegations. Under the judgment entered by U.S. District Judge Wendy Beetlestone, the defendants must jointly disgorge over $856,000 in ill-gotten gains, pay nearly $35,000 in interest, and Scalise will pay an additional civil penalty of more than $236,000.
The SEC alleges that in reality, the only link to the celebrity was a nonbinding 2022 letter of intent signed with her brother, Rorrey Fenty. The letter outlined that Fenty might facilitate a meeting with the star’s team, contingent upon payment, which was never made. The3rdBevco never finalized the agreement or secured any legitimate endorsement or partnership.
Beyond the false promotion, the SEC also discovered that Scalise misappropriated more than $850,000 for personal use, including mortgage payments, tuition, and landscaping expenses. The company, which reported little to no sales, relied heavily on investor funds to operate and repeatedly failed to comply with reporting requirements under Regulation A.
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