Vending

Men charged in $275M water vending machine Ponzi scheme

Photo: Adobe Stock

August 15, 2025

Two men have been federally indicted in New York on charges related to two Ponzi-like schemes involving water vending machines that allegedly defrauded more than 250 investors of over $275 million, according to an Investment News report.

The alleged schemes, which operated from September 2016 to February 2024, are tied to Ryan Wear, founder of Water Station Management LLC, and Jordan Chirico, a portfolio manager for the hedge fund 3|5|2 Capital ABS Master Fund LP.

Wear is charged with securities and wire fraud for allegedly selling non-existent water vending machines to investors, many of whom were military veterans, according to the Department of Justice. He is accused of using new investor funds to pay off earlier investors and diverting millions for personal expenses.

In a separate indictment, Chirico is charged with investment adviser and securities fraud for allegedly causing his hedge fund to invest nearly $100 million in Wear's scheme, while concealing his own personal financial stake in the company and his knowledge that it was a scam.

"The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history," Daniel Brubaker, U.S. Postal Inspection Service inspector in charge, told the news outlet.

If convicted, Wear faces a maximum of 20 years in prison for each charge, while Chirico faces a maximum of 20 years for the securities fraud charge and five years for the investment adviser fraud charge.