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

Statement of charges alleges that Water Station and Ryan Wear improperly raised $129 million in fraudulent investments nationwide

OLYMPIA – The Washington State Department of Financial Institutions (DFI) filed a Statement of Charges against Everett, WA-based Water Station Management, its founder Ryan Wear, affiliated entities, and several of its salespersons for multiple violations of the Securities Act between 2016 and 2022.

DFI alleges that Water Station and its representatives offered and sold water vending machines that were serviced and managed by the company for a fee. Nationwide, at least 171 investors spent more than $129 million on this investment. At least 10 Washington residents invested approximately $11.2 million.

DFI alleges that to help sell its investment, Water Station misled its investors. It funneled at least 70 individuals toward small business loans while neglecting to inform them that using these loans to purchase Water Station investments would violate federal guidelines.

Additionally, DFI asserts that Water Station also executed a much more egregious scheme to defraud investors by misleading them about the number and location of the water vending machines. The company sold investors thousands of machines that either did not exist or did not exist in the places the company represented them to be. Of the nearly 15,000 machines investors purchased, only about 6,000 existed. More than half the machines that did exist were in a warehouse, not earning revenue.

“Washington’s securities laws exist to protect investors,” DFI Division of Securities William Beatty said. “Taking action against entities that make unlawful offerings and those that mislead investors is an important part of DFI’s mission of investor protection.”

Water Station raised hundreds of millions of dollars from investors and banks before ultimately being forced into involuntary bankruptcy proceedings late last year. Investors have been left to shoulder the burden for Water Station’s fraud and financial mismanagement.

The Statement of Charges announces DFI’s intent to order Water Station and its founder, Ryan Wear, to cease and desist from violations of the Securities Act, to pay a fine, and to pay costs related to the investigation. The action puts several Water Station salespersons on notice that DFI intends to order them to do the same.

DFI is the first state regulator to take public action against Water Station for violating state securities laws.

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About DFI ▪ www.dfi.wa.gov ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: https://www.facebook.com/wadfi ■ www.instagram.com/wastatedfi/ ■ https://x.com/dficonsumers ■ https://dfi.wa.gov/financial-education/blog ■ https://www.youtube.com/user/WADFI ■ www.homeownership.wa.gov ■ www.linkedin.com/company/state-of-washington-department-of-financial-institutions/ ■ https://bsky.app/profile/wastatedfi.bsky.social

About the Division of Securities ▪ https://www.dfi.wa.gov/securities ▪ 360-902-8760 ▪ 877-746-4334
The Division of Securities regulates securities investments, franchises, business opportunities, and off-exchange commodities sold in Washington and the firms and individuals that sell these products or provide investment advice. The Division handles complaints, conducts investigations, and takes appropriate enforcement actions to protect investors and combat fraud.