SEC v. Ryan R. Wear; Water Station Management LLC; Creative Technologies, Inc.; Refreshing USA, LLC; Ideal Property Investments LLC; and Jordan Chirico, No. LR-26375, Southern District of New York (Aug. 15, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26375 / August 15, 2025 Securities and Exchange Commission v. Wear, et al., No. 25-civ-6713 (S.D.N.Y. filed Aug. 14, 2025) Securities and Exchange Commission v. Chirico, No. 25-civ-6715 (S.D.N.Y. filed Aug. 14, 2025) Founder and Owner of Washington-Based Water Machine Manufacturer and Two Companies Charged in $275 Million Fraud Scheme On August 14, 2025, the Securities and Exchange Commission charged Ryan Wear, of Marysville, Washington, and his entities, Water Station Management LLC and Creative Technologies, Inc., for operating two related Ponzi-like schemes between September 2016 and February 2024 that raised more than $275 million from more than 250 investors. In a separate action, the SEC also charged portfolio manager Jordan Chirico, of Carmel, Indiana, for violating his fiduciary duty by investing his private fund client in the scheme despite his undisclosed conflicts of interest and awareness of red flags. The SEC’s complaint against Wear, Water Station, and Creative Technologies alleges that from September 2016 through September 2023, these defendants raised more than $165 million, primarily from retail investors including veterans, by offering and selling investment contracts in which investors supposedly purchased water machines that would generate revenues. In reality, the complaint alleges, thousands of the water machines did not exist or had already been sold to other investors. The complaint further alleges that in a second, related scheme, these defendants raised more than $110 million from institutional investors between April 2022 and February 2024 through the issuance of Water Station notes purportedly secured by water machines. As with the first scheme, most of the water machines did not exist or were not owned by Water Station, according to the complaint. These defendants also allegedly misappropriated over $60 million of investor funds to make Ponzi-like payments to other investors and fund Wear’s other business ventures, including Refreshing USA, LLC and Ideal Property Investments LLC, which are named in the complaint as relief defendants. The SEC’s separate complaint against Chirico alleges he violated his fiduciary duty to his private fund client, including by directing the fund client to purchase Water Station notes without disclosing his significant personal investment in the business. The complaint also alleges Chirico failed to act in the fund client’s best interests by causing it to substantially increase its investments in the notes despite red flags that some of the purported water machine collateral may have been fabricated. The SEC’s complaints were filed in the U.S. District Court for the Southern District of New York. The complaint against Wear and his entities charge all defendants with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1945 and Rule 10b-5 thereunder; Wear with control person liability for violations of Exchange Act Section 10(b) and Rule 10b-5 thereunder by Water Station and Creative Technologies; and the relief defendants with unjust enrichment. The complaint seeks injunctive relief and civil penalties against the defendants, disgorgement of ill-gotten gains against the defendants and relief defendants, and an officer and director bar against Wear. The complaint against Chirico charges him with violating Sections 206(1) and (2) of the Investment Advisers Act of 1940, and seeks injunctive relief, civil penalties, and disgorgement of ill-gotten gains. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York announced criminal charges against Wear and Chirico on August 14, 2025. The SEC’s investigation was conducted by Heather L. Shaffer, Ming Ming Yang, and Brian Fitzpatrick, all of the Asset Management Unit, as well as David Zetlin-Jones, Jordan Baker, Neal Jacobson, and Patricia Schrage, all of the New York Regional Office. The investigation was supervised by Lee A. Greenwood and Mr. Schuster, also of the Asset Management Unit. The litigation will be led by Mr. Zetlin-Jones, Ms. Shaffer, and Ms. Yang, and will be supervised by Daniel Loss of the New York Regional Office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the U.S. Attorney’s Office for the Western District of Washington, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Small Business Administration Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Washington State Department of Financial Institutions.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26375 / August 15, 2025 Securities and Exchange Commission v. Wear, et al., No. 25-civ-6713 (S.D.N.Y. filed Aug. 14, 2025) Securities and Exchange Commission v. Chirico, No. 25-civ-6715 (S.D.N.Y. filed Aug. 14, 2025) Founder and Owner of Washington-Based Water Machine Manufacturer and Two Companies Charged in $275 Million Fraud Scheme On August 14, 2025, the Securities and Exchange Commission charged Ryan Wear, of Marysville, Washington, and his entities, Water Station Management LLC and Creative Technologies, Inc., for operating two related Ponzi-like schemes between September 2016 and February 2024 that raised more than $275 million from more than 250 investors. In a separate action, the SEC also charged portfolio manager Jordan Chirico, of Carmel, Indiana, for violating his fiduciary duty by investing his private fund client in the scheme despite his undisclosed conflicts of interest and awareness of red flags. The SEC’s complaint against Wear, Water Station, and Creative Technologies alleges that from September 2016 through September 2023, these defendants raised more than $165 million, primarily from retail investors including veterans, by offering and selling investment contracts in which investors supposedly purchased water machines that would generate revenues. In reality, the complaint alleges, thousands of the water machines did not exist or had already been sold to other investors. The complaint further alleges that in a second, related scheme, these defendants raised more than $110 million from institutional investors between April 2022 and February 2024 through the issuance of Water Station notes purportedly secured by water machines. As with the first scheme, most of the water machines did not exist or were not owned by Water Station, according to the complaint. These defendants also allegedly misappropriated over $60 million of investor funds to make Ponzi-like payments to other investors and fund Wear’s other business ventures, including Refreshing USA, LLC and Ideal Property Investments LLC, which are named in the complaint as relief defendants. The SEC’s separate complaint against Chirico alleges he violated his fiduciary duty to his private fund client, including by directing the fund client to purchase Water Station notes without disclosing his significant personal investment in the business. The complaint also alleges Chirico failed to act in the fund client’s best interests by causing it to substantially increase its investments in the notes despite red flags that some of the purported water machine collateral may have been fabricated. The SEC’s complaints were filed in the U.S. District Court for the Southern District of New York. The complaint against Wear and his entities charge all defendants with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1945 and Rule 10b-5 thereunder; Wear with control person liability for violations of Exchange Act Section 10(b) and Rule 10b-5 thereunder by Water Station and Creative Technologies; and the relief defendants with unjust enrichment. The complaint seeks injunctive relief and civil penalties against the defendants, disgorgement of ill-gotten gains against the defendants and relief defendants, and an officer and director bar against Wear. The complaint against Chirico charges him with violating Sections 206(1) and (2) of the Investment Advisers Act of 1940, and seeks injunctive relief, civil penalties, and disgorgement of ill-gotten gains. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York announced criminal charges against Wear and Chirico on August 14, 2025. The SEC’s investigation was conducted by Heather L. Shaffer, Ming Ming Yang, and Brian Fitzpatrick, all of the Asset Management Unit, as well as David Zetlin-Jones, Jordan Baker, Neal Jacobson, and Patricia Schrage, all of the New York Regional Office. The investigation was supervised by Lee A. Greenwood and Mr. Schuster, also of the Asset Management Unit. The litigation will be led by Mr. Zetlin-Jones, Ms. Shaffer, and Ms. Yang, and will be supervised by Daniel Loss of the New York Regional Office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the U.S. Attorney’s Office for the Western District of Washington, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Small Business Administration Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Washington State Department of Financial Institutions.