Settlement Reached: The3rdBevco Inc. and Founder to Pay $1.13 Million for Securities Fraud
The company The3rdBevco Inc. and its founder have reached a settlement to pay over $1.13 million to settle charges of defrauding investors by promoting a fake celebrity partnership and selling unregistered securities. CEO Peter Scalise III and the company have agreed to return more than $856,000 in profits and pay nearly $35,000 in prejudgment interest. The settlement, which is subject to court approval, includes restrictions on violating securities laws.
The charges against The3rdBevco and Scalise involve allegations of misleading investors by falsely claiming a collaboration with Rihanna and selling securities without proper registration. The settlement agreement requires the company and its founder to repay the ill-gotten gains and interest, as well as comply with securities laws in the future. The settlement is part of efforts to address fraudulent practices in the securities industry and protect investors from deceptive schemes.
The agreement reached between The3rdBevco Inc. and its founder highlights the consequences of engaging in fraudulent activities in the securities market. By agreeing to pay over $1.13 million and adhere to securities laws, the company and its CEO aim to resolve the allegations and prevent future violations. The settlement serves as a reminder of the importance of transparency and compliance in the financial industry to safeguard investors and maintain market integrity.