Archive · 16 Aug 2025
SEC Alleges Largest Franchise Fraud In US History: Water Vending Scheme
Imagine someone said you could buy water vending machines and make lots of money.
They promised you'd get a good return, like a free gift.
But instead of real machines, they were making it all up.
This person, Ryan Wear, took money from lots of people, including veterans, and didn't give them what they paid for.
An advisor, Jordan Chirico, also invested client money without telling them he had a stake in the business.
Now both face charges and could go to prison.
SEC alleges Ryan Wear ran a $275 million Ponzi scheme through a water vending machine business.
Investors, including veterans, were promised high returns on vending machines that often didn't exist.
Jordan Chirico, an investment advisor, allegedly invested client funds in the scheme without disclosing his personal stake.
Wear is facing criminal charges for securities and wire fraud; Chirico faces securities and investment advisor fraud charges.
The SEC is seeking to bar Wear from corporate leadership and Chirico from financial advising.
- Who
- Ryan Wear, Jordan Chirico, and investors.
- What
- A water vending machine Ponzi scheme and investment advisor fraud.
- When
- The scheme ran from September 2016 to September 2023.
- Where
- New York (federal court).
- Why
- To defraud investors out of $275 million through false promises.
Allegations of Fraud
No opposing side provided in the articles
Vending Machine Reality
Allegations of Fraud
The SEC alleges the vending machines promised were often nonexistent or already sold.
No opposing side provided in the articles
No opposing view available in the articles.
- Alleged Scheme Total
- $275 million
- Wear's Age
- 49
- Promised Returns
- 12%-20%
- Number of Machines Sold
- 15,000+
- Number of Investors
- ~250
- Chirico's Charges
- Securities Fraud, Investment Advisor Fraud
- Wear's Charges
- Securities Fraud, Wire Fraud