Financial predators have bilked over 250 American investors—including military veterans—out of $275 million through a brazen water vending machine Ponzi scheme.
Story Highlights
- Ryan Wear and Jordan Chirico orchestrated a $275 million fraud targeting veterans and institutions
- Thousands of promised water vending machines never existed or were sold multiple times
- Ex-Jefferies portfolio manager breached fiduciary duties while hiding personal conflicts of interest
- Federal agencies coordinate enforcement after eight years of systematic investor exploitation
Fraudulent Empire Built on False Promises
Ryan Wear, founder of Water Station Management LLC, constructed an elaborate deception that preyed on Americans seeking legitimate investment opportunities. From September 2016 through February 2024, Wear sold contracts for water vending machines that either didn’t exist or were fraudulently sold to multiple investors. The Washington entrepreneur exploited trust and patriotism, specifically targeting military veterans with promises of passive income and exclusive financing opportunities that never materialized.
US Charges Two in $275 Million Water Vending Machine Ponzi Case #news https://t.co/e3mEmSf99A via @epochtimes
— Filtered News (@filterednews) August 16, 2025
Wall Street Professional Betrays Fiduciary Trust
Jordan Chirico, a former Jefferies portfolio manager overseeing the 3|5|2 Capital ABS Master Fund LP, violated his professional obligations by secretly investing client funds into Wear’s fraudulent schemes. Chirico concealed his personal financial interests while directing institutional money toward investments he knew were compromised. This breach of fiduciary duty represents exactly the kind of Wall Street insider corruption that has systematically disadvantaged ordinary Americans and institutional investors alike.
US Charges Two in $275 Million Water Vending Machine Ponzi Case effecting Veterans too. https://t.co/ZejREMfzrD
— Tee (@LatanneRene) August 16, 2025
The scheme operated through multiple Wear-controlled entities including Creative Technologies Inc., Refreshing USA LLC, and Ideal Property Investments LLC. Federal prosecutors allege that investor funds were systematically diverted to make Ponzi-style payments to earlier investors while financing Wear’s other business ventures. Washington’s Department of Financial Institutions estimates $129 million was fraudulently raised nationwide between 2016 and 2022 alone.
Veterans Targeted in Calculated Exploitation
The fraudsters deliberately targeted military veterans, exploiting their service records and access to small business financing programs. Investigators discovered that Water Station Management funneled investors toward federal small business loans, often violating SBA guidelines in the process. This calculated targeting of America’s veterans represents a particularly egregious form of financial predation that undermines the economic security of those who served our nation.
Regulatory Response Exposes System Failures
The coordinated enforcement action by the SEC, DOJ, FBI, IRS, and multiple inspector general offices reveals how sophisticated financial fraud can operate for years before detection. Water Station Management was forced into bankruptcy in August 2024, but only after thousands of investors had already suffered devastating losses. The case highlights persistent vulnerabilities in investor protection frameworks, particularly for alternative asset investments involving physical collateral that can be easily misrepresented or duplicated.
Federal prosecutors are seeking criminal penalties including securities fraud and wire fraud charges, while the SEC pursues civil remedies including asset recovery, penalties, and permanent bars from serving as corporate officers. The litigation continues in the Southern District of New York, though the bankruptcy of Water Station Management complicates investor recovery prospects significantly.
Sources:
SEC Litigation Release LR-26375
Washington DFI Takes Action Against Water Station Founder Ryan Wear
SEC Press Release 2025-107: Founder/Owner of Washington-Based Water Machine Manufacturer Charged
