Beverage CEO Fined $1.1 Million for ‘Fraudulent’ Rihanna Rum Venture That Allegedly Ensnared the Musician’s Brother

(Photo: The 3rdBevco Inc.)

Earlier this month, the U.S. Securities and Exchange Commission handed down a $1.1 million fine to Peter Scalise III and his company, The 3rdBevco, which allegedly scammed investors with promises of a rum venture fraudulently associated with pop star Rihanna.

According to the complaint, the “deceptive conduct” began with a family connection. In September 2022, 3rdBevco reportedly signed a nonbinding letter of intent with Rorrey Fenty to act as the firm’s senior strategic consultant for its Celebrity Brand Division. Fenty, the younger brother of pop star Rihanna, was said to provide a network of “deep connections” that would elevate the company’s brands to the next level.

Scalise and 3rdBevco never met or signed a deal with Rihanna herself. Despite this, the team is alleged to have begun using her name, image, trademark and music in various promotional materials, including a fictitious “RiRi Rum” that was marketed to investors. Between October 2019 and May 2024, Scalise’s company reportedly raised over $3.6 million based on “materially false and misleading statements.”

According to the SEC, Scalise misappropriated approximately $856,000 of those funds for personal expenses, including tuition, mortgage payments and landscaping. Scalise and 3rdBevco agreed to settle the case without confirming or denying the allegations, paying out $856,461 in disgorgement, $34,677 in prejudgment interest and an additional $236,451 in civil penalties.

A surprising amount of the alleged paper trail can still be found floating around online. In a news release from 2022, 3rdBevco published a computer-generated image of a billboard advertising RiRi Rum. The news release hinted at potential business partnerships with Rihanna and other celebrities in Rorrey Fenty’s orbit.

“Mr. Fenty plans to bring his deep connections within the celebrity community and his knowledge of luxury lifestyle brands to The 3rd Bevco team. Mr. Fenty will make introductions to A-list celebrities for potential partnerships and provide his expertise on how to best present the brand offering itself,” the release stated. “Perhaps the most exciting area of focus in this new division is the potential to develop an exclusive Barbados-distilled rum called RiRi, with Mr. Fenty’s sister Rihanna as a partner.”

The 3rdBevco website is still fully operational. In blurbs scattered across the page, the company describes how celebrity spirits and social media are “transforming the industry,” citing a string of notable brands like George Clooney’s Casamigos Tequila and Ryan Reynolds’ Aviation Gin. The website says that the “influence and reach of celebrities” are a core pillar of the company’s marketing strategy, though it doesn’t mention any alleged associates by name.

The company is responsible for Bougie, a non-alcoholic sparkling wine, PSILLI, a mushroom-infused sparkling water and LAID, a fitness drink said to be “as good as sex” in its product description. The 3rdBevco also offers a tequila brand dubbed Vive Ama Rie, Spanish for “Live, Love and Laugh.”