An Everett entrepreneur is facing federal charges for what prosecutors allege was a massive Ponzi scheme tied to water vending machines, a scam one investor described as possibly “the largest franchise fraud case in the history of the United States,” according to the U.S. Attorney’s Office for the Western District of Washington.
Federal prosecutors say 49-year-old Ryan Wear, who operated Water Station Management LLC until the business went bankrupt in August 2024, raised more than $200 million from retail investors and U.S. military veterans. According to the Department of Justice, Wear is accused of securities and wire fraud for allegedly selling water vending machines, many of which never existed, and using money from new investors to pay returns promised to earlier ones.
FBI Special Agent in Charge W. Mike Herrington noted that the losses from the alleged scheme were “staggering,” reaching at least $200 million, and called the deception “absolutely unconscionable” given that it targeted everyday investors, including veterans.
The case is being prosecuted in the Southern District of New York. If found guilty, Wear could face a prison sentence of 20 years or more.
