Two individuals have been indicted in New York on federal charges related to a water vending machine Ponzi scheme that allegedly defrauded investors of over $200 million, according to a statement from the U.S. Department of Justice (DOJ). Ryan Wear, 49, a resident of Everett, Washington, is accused of misleading investors by selling water vending machines that often did not exist and using funds from new investors to pay returns to earlier investors. Wear was the owner of Water Station Management, which filed for bankruptcy in August 2023.
Additionally, Wear faces civil charges from the Securities and Exchange Commission (SEC) for violations of federal securities laws associated with the scheme. The indictment specifies that many of the victims included retail investors and military veterans.
Jordan Chirico, a 41-year-old former fund portfolio manager from Carmel, Indiana, has also been indicted. He is accused of purchasing over $100 million in bonds from Water Station while concealing his financial interest in the company and his awareness of the alleged fraudulent activities. Chirico faces charges of investment advisor fraud, separate from the Ponzi scheme charges against Wear.
If convicted, both men could face a maximum sentence of 20 years in prison. FBI Special Agent W. Mike Herrington commented on the significant scale of the fraud and the impact on victims, emphasizing the gravity of the alleged criminal activities. The case highlights ongoing concerns regarding investment fraud and its effects on vulnerable populations.