Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Federal authorities have charged Derek Wachob, the chief executive officer of a major steel pipe manufacturer based in Sapulpa, Oklahoma, with wire fraud for allegedly orchestrating a scheme that defrauded investors and companies out of at least $66 million. The indictment was unsealed by the U.S. Attorney for the Southern District of New York, Jay Clayton, and FBI Assistant Director in Charge Christopher G. Raia.
Wachob was arrested in Sapulpa and is expected to appear before a judge in the Northern District of Oklahoma. The case will be overseen by U.S. District Judge J. Paul Oetken.
“Derek Wachob claimed to be a billionaire and successful CEO, but as alleged, that image was built on lies,” said U.S. Attorney Jay Clayton. “He stole more than $66 million from a range of victims that included some of his closest friends, then used those funds to maintain a lifestyle of expensive cars, vacation homes, private jets, helicopters, and yachts. The steel industry is a pillar of our manufacturing community, where honest and hard-working success is to be celebrated, but there is no place for fraud. This Office will work relentlessly to bring high-flying fraudsters to justice.”
FBI Assistant Director in Charge Christopher G. Raia stated: “Derek Wachob allegedly stole at least $66 million from investors, including some of his closest friends, and financial institutions to secretly fund his failing company and extravagant lifestyle through false promises of profitable business ventures. Wachob allegedly abused his authority as CEO to entice his targets with a mirage of success while shrouding the truth in deceit. The FBI remains committed to investigating any business leader who siphons from the accounts of trusting victims for personal enrichment.”
According to allegations in the indictment covering October 2022 through August 2024, Wachob misled individual investors as well as financial institutions by promising lucrative business opportunities tied to future steel purchases he claimed he would make on behalf of his company—referred to as Company-1 in court documents—which was struggling financially at the time.
The indictment claims that instead of using investor funds as promised for legitimate business activities or investments into Company-1’s operations, Wachob diverted money toward personal luxury items such as cars and yachts.
Wachob faces one count of wire fraud with a maximum sentence set by Congress at 20 years; however actual sentencing will be determined by a judge if he is convicted.
U.S. Attorney Clayton commended the efforts by the FBI during this investigation and acknowledged assistance from the U.S. Attorney’s Office for the Northern District of Oklahoma.
Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati are prosecuting this case under the Complex Frauds and Cybercrime Unit.
The charges against Wachob are accusations only; he is presumed innocent unless proven guilty in court.
