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The3rdBevCo settles ‘fraudulent’ claims of Rihanna rum

19 June 2025 By Melita Kiely

American alcohol company The3rdBevCo and its CEO have agreed to pay more than US$1.1 million after facing charges they defrauded would-be investors by inaccurately suggesting the firm was set to collaborate with pop star Rihanna.

Rihanna rum lawsuit — The3rdBevCo claimed it was due to work with singer Rihanna

The US Securities and Exchange Commission (SEC) charged Peter Scalise III and his New York-based The3rdBevCo with defrauding investors and misrepresenting the company’s business operations, and its use of investor funds.

Scalise and The3rdBevCo have agreed to jointly pay more than US$1.1m to settle the charges.

The SEC filed a complaint in the US District Court for the Eastern District of Pennsylvania.

According to the complaint, from October 2019 to May 2024, Scalise and The3rdBevCo raised approximately US$3.6m from investors, based on ‘materially false and misleading statements and other deceptive conduct’.

A press release shared in September 2022 claimed The3rdBevCo had signed a letter of intent with Rorrey Fenty to act as a senior strategic consultant for the firm’s newly launched Celebrity Brand Division. Fenty is the younger brother of pop star Rihanna.

According to the filed SEC complaint, Scalise and The3rdBevCo allegedly used the singer’s name, image and trademark without permission to promote investments.

Furthermore, it alleges Scalise ‘misappropriated and misused’ more than US$850,000 of investor funds, including to pay personal expenses – such as tuition, mortgage and landscaping – directly from The3rdBevCo’s bank accounts.

The complaint also accused The3rdBevCo of ‘repeatedly’ selling unregistered securities to the public without an exemption from registration.

Scalise and The3rdBevCo neither admitted nor denied the allegations in the SEC’s complaint. They consented to a final judgement, subject to court approval, that permanently charged them with violating various laws. This held them jointly and severally liable for US$856,461 in disgorgement and US$34,677 in prejudgement interest.

Scalise was also ordered to pay a civil penalty of US$236,451. He is banned from taking part in issuance, purchase, offer or sale of securities, except for buying or selling securities for his own personal account.

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