DOJ, SEC charge two men in $200 million water vending machine Ponzi scheme

Two men person been indicted successful New York connected national transgression charges successful transportation with a h2o vending instrumentality Ponzi strategy that allegedly swindled investors retired of much than $200 million, the Department of Justice said Thursday.

The 2 men were besides deed by the Securities and Exchange Commission with civilian charges of violating antifraud provisions of the national securities laws successful transportation the aforesaid scheme.

Ryan Wear, 49, of Everett, Washington, is accused of "raising much than $200 cardinal from investors by selling them h2o vending machines that, successful galore cases, did not exist, and paying promised returns done caller capitalist money," the DOJ said successful a property release.

Wear, who is the erstwhile proprietor and relation of a institution called Water Station Management, is charged with securities and ligament fraud. His institution was forced into bankruptcy past August.

The indictment against him successful U.S. District Court successful Manhattan says that galore of the radical swindled successful the strategy were retail investors and subject veterans.

Former money portfolio manager Jordan Chirico, a 41-year-old from Carmel, Indiana, is accused of purchasing much than $100 cardinal successful bonds issued by Water Station portion "concealing his idiosyncratic fiscal involvement successful the institution and, eventually, his cognition of the fraud that had been perpetrated by Wear," the DOJ said.

Chirico is accused of a strategy to defraud 3|5|2 Capital ABS Master Fund LP, an concern money
which was portion of Jefferies Financial Group's Leucadia Asset Management.

Chirico, who was a manager for the fund, is charged with concern advisor fraud successful a abstracted indictment successful Manhattan national court.

Both men look a maximum imaginable condemnation of 20 years successful situation if convicted.

"The standard of this fraud, which resulted successful astatine slightest $200 cardinal successful losses, is simply staggering," said FBI Special Agent successful Charge W. Mike Herrington, who is based successful Seattle, Washington.

"And the deception and obfuscation these 2 men allegedly engaged successful to siphon funds from retail investors, adjacent U.S. subject veterans, is perfectly unconscionable."