The US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have jointly unveiled sweeping criminal and civil charges against two men accused of orchestrating a massive water vending machine Ponzi scheme that defrauded investors of more than $200 million. Federal prosecutors described the case as one of the most brazen and damaging frauds in recent years, targeting retail investors, including military veterans, through false promises and deception.

At the center of the case is 49-year-old Ryan Wear, a resident of Everett, Washington, and former owner of Water Station Management, a company that marketed and sold water vending machines to investors. According to prosecutors, Wear raised more than $200 million from investors by claiming that his company operated and maintained high-tech water vending machines across the United States.

Investors were told they could purchase these machines and receive a steady stream of income from water sales. In reality, many of the vending machines did not exist. Instead, Wear allegedly used funds from new investors to pay earlier investors, a classic hallmark of a Ponzi scheme.

By perpetuating this cycle, Wear allegedly kept the scheme afloat for years before the company was forced into bankruptcy in August 2023. The collapse left thousands of investors, including retirees and veterans, facing devastating financial losses.

The scandal also ensnared Jordan Chirico, a 41-year-old former portfolio manager from Carmel, Indiana. Chirico was accused of using his professional position to funnel more than $100 million of his clients’ money into bonds issued by Water Station Management.

Prosecutors allege that Chirico concealed his personal financial stake in the company and later continued to invest........

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