A beverage startup called The3rdBevco, based in Long Island, has been fined $1.1 million by the Securities and Exchange Commission (SEC) due to allegations of fraud involving a nonexistent rum brand associated with Rihanna, called "RiRi Rum." The company’s founder, Peter Scalise III, agreed to the settlement without admitting or denying the allegations.

The SEC reported that The3rdBevco previously announced plans to employ Rihanna’s brother, Rorrey Fenty, as a strategic consultant to help develop the rum brand. While a letter of intent was signed, the SEC clarified that there were no real negotiations or agreements made with either Rihanna or her team regarding this partnership.

For over a year, The3rdBevco misled investors by falsely claiming they were working with Rihanna. They used unauthorized images and music of Rihanna in their presentations and presented fraudulent documents, including a fake signature purportedly from the artist.

Despite Rorrey Fenty’s intention to assist in the project, he did not enter into a formal agreement with The3rdBevco, and his involvement was limited. He had expressed concerns about the company’s practices, particularly regarding the unauthorized use of Rihanna’s likeness and name.

In addition to the fraudulent claims about the rum collaboration, the SEC’s complaint stated that The3rdBevco was involved in selling unregistered shares and misappropriating nearly $900,000 of investor funds for personal expenses.

Mark David Hunter, the attorney for The3rdBevco and Scalise, commented that they are relieved to have resolved the issue. Neither Rorrey nor Rihanna is implicated in the deceptive actions of The3rdBevco.