CRIME BLOTTER

Everett man indicted in $200 million water machine Ponzi scheme

Aug 14, 2025, 5:18 PM

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A photo of the U.S. Department of Justice Seal. (Photo courtesy of the U.S. Department of Justice)

(Photo courtesy of the U.S. Department of Justice)

An Everett man is now under federal indictment for an alleged Ponzi scheme that was described by an investor as “the largest franchise fraud case in the history of the United States,” according to a news release from the U.S. Attorney’s Office for the Western District of Washington on Thursday.

Ryan Wear, 49, owned Water Station Management LLC until it was forced into bankruptcy in August 2024.

Wear was charged for alleged securities and wire fraud in connection with raising more than $200 million from retail investors and military veterans, the Department of Justice stated.

Everett man allegedly sold water vending machines that didn’t exist

Prosecutors said Wear sold water vending machines that, in many cases, did not exist, and paid promised returns with new investor money.

“The scale of this fraud, which resulted in at least $200 million in losses, is simply staggering,” FBI Special Agent in Charge W. Mike Herrington stated in the release. “And the deception and obfuscation these two men allegedly engaged in to siphon funds from retail investors, even U.S. military veterans, is absolutely unconscionable.”

The case is being handled by prosecutors in the Southern District of New York. If convicted, Wear faces at least 20 years in prison.

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Everett man indicted in $200 million water machine Ponzi scheme