Ex-Jefferies Fund Manager Accused in Water-Vend Scam (Correct)

A former Jefferies Financial Group Inc. hedge fund manager was charged with fraud by federal prosecutors in New York for allegedly directing the purchase of nearly $100 million in bonds tied to a water-vending machine business.

Jordan Chirico is accused of directing the Jefferies fund, 352 Capital, to purchase bonds funding a Washington state business that purported to operate a network of water vending machines, according to an indictment unsealed Thursday in New York federal court. But in many cases, the machines didn’t exist, prosecutors allege.

The owner of the business, Ryan Wear, was also charged with fraud. Prosecutors said ...