SEC v. Peter Scalise III and The3rdBevco Inc. — U.S. Securities and Exchange Commission Litigation Release No. 26328, dated June 17, 2025.
The SEC charged Peter Scalise III and his beverage company, The3rdBevco Inc., with a multi-million dollar offering fraud. They allegedly raised $3.6 million from investors by making false claims about a celebrity collaboration and misusing over $850,000 of investor funds for personal expenses. The defendants agreed to pay over $1.1 million to settle the charges.
In Plain English
Imagine someone selling shares in their lemonade stand, promising it will soon be a huge chain with a famous celebrity's help. They collect $3.6 million from people. But, they lied about the celebrity deal and secretly used over $850,000 of that money to pay for their own personal bills, like their house payment and tuition. Now, they've agreed to pay back over $1.1 million to settle the case.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Founding the Beverage Company In 2019, Peter Scalise III founded The3rdBevco Inc., initially named LAID Beverages, Inc. He controlled all aspects of the company, including its fundraising efforts and how investor money was used.
- Promising a Celebrity Collaboration Scalise and The3rdBevco told investors they were developing a new rum alcohol brand in collaboration with a 'Global Superstar and Music Icon.' They used the celebrity's name, image, trademark, and even music in promotional materials to attract investment.
- Unauthorized Celebrity Endorsement Crucially, the defendants used the celebrity's name, image, and trademark without any authorization. While they communicated with the celebrity's brother about a potential meeting, no deal was ever struck with the celebrity or their management team.
- Misrepresenting Use of Funds Investors were told their funds would primarily be used to develop and operate the company's beverage business. However, this was not the primary use of the money raised.
- Misappropriating Investor Funds Scalise allegedly misappropriated and misused over $850,000 of investor funds. This money was used for personal expenses, including tuition payments, mortgage payments, and landscaping, directly from The3rdBevco's bank accounts.
- Selling Unregistered Securities The3rdBevco repeatedly sold securities to the public without registering them and without a valid exemption from registration requirements.
- Raising Millions Through Deception From October 2019 to May 2024, Scalise and The3rdBevco raised approximately $3.6 million from investors through these deceptive practices and the sale of unregistered securities.
The Enforcement Action
The SEC charged Peter Scalise III and The3rdBevco Inc. with defrauding investors. Scalise and The3rdBevco agreed to pay over $1.1 million to settle the charges. The settlement includes permanent injunctions against violating securities laws, $856,461 in disgorgement plus $34,677 in prejudgment interest, a $236,451 civil penalty for Scalise, and officer-and-director and penny stock bars for Scalise.
Named in this action: Peter Scalise III and The3rdBevco Inc..