Litigation Releases (Peter Scalise III and The3rdBevco Inc.)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26328 / June 17, 2025

Securities and Exchange Commission v. Peter Scalise III and The3rdBevco Inc., Civil ActionNo. 2:25-cv-03088 (E.D. Pa. filed June 17, 2025)

SEC Charges CEO and Beverage Company with a Multi-Million Dollar Offering Fraud

The Securities and Exchange Commission today charged Peter Scalise III and the New York-based beverage company he founded, The3rdBevco Inc., with defrauding investors by misrepresenting the company's business operations and use of investor funds. Scalise and The3rdBevco have collectively agreed to pay more than $1.1 million to settle charges.

According to the SEC's complaint, filed in the United States District Court for the Eastern District of Pennsylvania, from October 2019 to May 2024, Scalise and The3rdBevco raised approximately $3.6 million from investors through the sale of unregistered securities based on materially false and misleading statements and other deceptive conduct. The complaint alleges that Scalise and The3rdBevco deceived investors about a potential collaboration with a celebrity on a new brand of rum alcohol. According to the complaint, The3rdBevco and Scalise characterized the celebrity as a "global superstar and music icon," and used the celebrity's name, image, and trademark without authorization to promote investments in The3rdBevco. Scalise also allegedly misappropriated and misused over $850,000 of investor funds, including to pay personal expenses-such as tuition, mortgage, and landscaping payments-directly from The3rdBevco's bank accounts. According to the SEC's complaint, The3rdBevco also repeatedly sold unregistered securities to the public without an exemption from registration.

Scalise and The3rdBevco, without admitting or denying the allegations in the SEC's complaint, consented to the entry of a final judgment, subject to court approval, which would permanently enjoin each of them from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and hold them jointly and severally liable for $856,461 in disgorgement plus $34,677 in prejudgment interest. The final judgment, if approved by the court, also would order Scalise to pay a civil penalty of $236,451; prohibit him from participating in the issuance, purchase, offer or sale of securities, except for purchasing or selling securities for his own personal account; and impose permanent officer-and-director and penny stock bars.

The SEC's investigation was conducted by Samika N. Osbourne, Polly A. Hayes, and Michael A. Cuff, with the assistance of trial counsel John V. Donnelly III-all of the SEC's Philadelphia Regional Office. Julia C. Green, Gregory R. Bockin, and Scott A. Thompson, also of the SEC's Philadelphia Regional Office, supervised this matter.