A former CEO sold investors on distribution deals that never existed. The SEC just filed fraud charges to prove it.

Brent Willis, the ex-CEO of NewAge, systematically lied about his company's retail partnerships in investor conferences, earnings calls, media interviews, and at least a dozen press releases. The Securities and Exchange Commission is now suing him for it.

The pattern is damning. In early 2018, Willis claimed NewAge had secured a distribution agreement with the US military. No such deal existed. The company never planned to stock products at military commissaries and exchanges worldwide. It didn't even have the inventory to fulfill that fantasy.

When CBD beverages became a trendy investment in late 2018, Willis pivoted. He told investors NewAge was developing a full portfolio of CBD-infused drinks and had locked down major retail orders. Again, none of it was true. NewAge never finished developing a CBD beverage product and never received a single retail order.

What Willis did do was take that fiction to the NACS trade show in Las Vegas in October 2018. He distributed sell sheets to retailers, distributors, and investors touting CBD products that didn't exist. The materials claimed the nonexistent drinks were made through a proprietary production process, developed in-house by New Age Health Sciences, third-party tested in every batch, and enhanced by full spectrum nano technology. All lies.

The distribution fabrications stretched across multiple products and years. Willis claimed XingTea was in roughly 1,500 7-Eleven stores nationwide when the actual agreement covered only about 250 stores in Colorado. He said Aspen Pure Probiotic water would stock 2,000-plus Ahold Delhaize locations when NewAge lacked the inventory and Ahold Delhaize only committed to 74 stores. A deal with Unified Strategies Group supposedly covered more than 1 million vending machines, 5,000 micro markets, and 1,800 client dining facilities across America. The agreement specified no distribution commitments at all.

In Canada, Willis told investors that Coco-Libre and Bucha Live Kombucha were being distributed through Loblaws and Sobeys. No distribution agreement existed with either retailer. He also promised South Korean expansion through the country's largest food and beverage distributor, another claim the SEC says was fabricated.

Each lie served the same purpose: inflate NewAge's apparent market reach and drive up the company's valuation. Investors betting on explosive growth got a front-row seat to an elaborate con instead. The SEC's lawsuit against Willis is an attempt to hold accountable the architect of that deception.

🤖 Quick Answer

What fraud charges did the SEC file against Brent Willis?
The SEC sued Brent Willis, former NewAge CEO, for systematically misrepresenting the company's retail partnerships to investors through conferences, earnings calls, and press releases. He falsely claimed distribution agreements with the US military and other entities that never existed, misleading investors about non-existent business deals and inventory capabilities.

How did Willis deceive investors regarding military contracts?
In early 2018, Willis announced that NewAge had secured a distribution agreement with the US military for worldwide product stocking at commissaries and exchanges. This agreement was entirely fabricated; the company neither planned nor possessed the inventory capacity to fulfill such arrangements with military facilities.

What business strategy shift did Willis make in late 2018?
Willis redirected his fraudulent narrative when CBD beverages gained investment popularity. He pivoted NewAge's purported business direction, claiming the company was

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