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

Two men were charged in New York for federal criminal accusations as part of a Ponzi regime, water machines that would have swindled investors on more than $ 200 million, the Ministry of Justice announced on Thursday.

The two men were also struck by the Securities and Exchange Commission with civil accusations of having violated the antifraude provisions of federal securities in the same system.

Ryan Wear, 49, of Everett, Washington, is accused of “lifting more than $ 200 million from investors by selling them automatic water distributors who, in many cases, did not exist and that the payment of promised yields thanks to new investors,” the DOJ said in a press release.

Wear, who is the former owner and operator of a company called Water Station Management, is accused of titles and fraud by wire. His business was forced to go bankrupt last August.

The indictment against him before the Manhattan American District Court said that many people who are defrauded in the program were retail investors and military veterans.

The former director of the fund portfolio, Jordan Chirico, a 41 -year -old man from Carmel, in Indiana, is accused of having bought more than $ 100 million in bonds issued by the water station while “hiding his personal financial contribution in the company and, finally, his knowledge of the fraud that had been perpetrated by wear,” said the MJ.

Chirico is accused of a 3 fraud program | 5 | 2 ABS Capital Master Fund LP, an investment fund
who was part of Leucadia Asset Management of Jefferies Financial Group.

Chirico, who was director of the fund, is accused of fraud to the advisor in place in a separate indictment before the Federal Court of Manhattan.

The two men risk a possible maximum sentence of 20 years in prison if they are convicted.

“Ryan Wear has collected hundreds of millions of dollars thanks to false promises of a water distributor company which has become nothing more than a scam that has the victim of retail investors, including military veterans,” said US prosecutor of Manhattan, Jay Clayton, in a statement.

“Jordan Chirico worsened things by putting his own financial interests before his professional functions, investing customer money in the water station – helping and injuring his investors – even after he knew that it was a scam. Fraud does not excuse another. With the help of our financial partners dedicated to financial fraud and colleagues throughout the Ministry of Justice.

The special agent of the FBI in charge of W. Mike Herrington, who is based in Seattle, Washington, said: “The extent of this fraud, which resulted at least $ 200 million in losses, is simply amazing.”

“And the deception and the obscure of these two men would have engaged in the siphon funds of retail investors, even American military veterans, is absolutely unacceptable,” said Harrington.