Washington DFI Takes Action Against Water Station, Founder Ryan Wear, and Affiliated Entities For Fraud

The Washington State Department of Financial Institutions (DFI) filed a Statement of Charges against Water Station Management and its founder, Ryan Wear, for allegedly defrauding investors of $129 million through misleading investment practices. Between 2016 and 2022, DFI claims the company misrepresented the existence and revenue potential of water vending machines, with only 6,000 of the nearly 15,000 sold actually existing. Investors were not informed that using small business loans to purchase these machines would violate federal guidelines. At least 171 investors across the country were misled, including 10 Washington residents who contributed approximately $11. 2 million.

DFI intends to impose fines and issue cease-and-desist orders to Water Station and its salespersons. The company raised hundreds of millions before being forced into involuntary bankruptcy proceedings, leaving investors to bear the financial losses. This case underscores the critical role of regulatory bodies in protecting investors from fraudulent schemes. The DFI's action marks the first public enforcement against Water Station for violating state securities laws.