GRIMY TIMES EXCLUSIVE: Ryan Wear, the former owner and operator of Water Station Management LLC, has been accused by federal prosecutors in New York of orchestrating a massive $200 million Ponzi scheme involving water vending machines.
The United States Attorney for the Southern District of New York, Jay Clayton, along with officials from the Western District of Washington, Postal Inspection Service, and FBI, announced the unsealing of an indictment charging Wear with securities and wire fraud. The scam allegedly involved selling non-existent water vending machines to investors who were promised returns through new investor money.
Joining Wear in the legal crosshairs is Jordan Chirico, a former fund portfolio manager, who faces charges of investment adviser fraud for purchasing over $100 million in Water Station bonds while hiding his personal stake and knowledge of the ongoing fraud.
U.S. Attorney Jay Clayton emphasized that Wear’s scheme not only defrauded retail investors but also targeted military veterans, describing Chirico’s actions as placing personal gain above professional duty.
The investigation revealed that Wear initially promised investors that each $8,500 investment would fund a water machine generating passive income, later transitioning to bonds supposedly collateralized by numerous vending machines. The scale of the fraud has left investors, including veterans, with substantial financial losses.
Inspector in Charge Daniel Brubaker of the USPIS noted the historical pattern of such schemes, where greed and deception leave investors’ hard-earned money in the hands of scammers. FBI Special Agent W. Mike Herrington highlighted the staggering amount of fraud, emphasizing the agency’s commitment to holding accountable those who exploit investor trust.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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