A man has been charged with defrauding groups out of over $66 million.
Derek Wachob, 53, of Sapulpa, Oklahoma, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
From October 2022 through August 2024, Wachob—the Chief Executive Officer of a large manufacturer of steel pipes based in Sapulpa, Oklahoma —engaged in a scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million.
Wachob lied and misled the victims by, among other things, falsely claiming to offer purported business opportunities based on future steel purchases that Wachob pledged to make. Wachob used these misrepresentations to take millions of dollars from his closest friends. Instead of using the victims’ money as promised, Wachob spent the funds to maintain his extravagant lifestyle of expensive cars, vacation homes, private jets, helicopters, and yachts, and prop up Company-1, which was struggling financially and in debt.
u.s. v. Wachob Indictment by scott.mcclallen
“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.”
Wachob was arrested in Sapulpa, Oklahoma, and will be presented this afternoon in the Northern District of Oklahoma. The case is assigned to U.S. District Judge J. Paul Oetken.
“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,” said FBI Assistant Director in Charge Christopher G. Raia. “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.”
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Attorney’s Office for the Northern District of Oklahoma for its assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati are in charge of the prosecution.
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation, Christopher G. Raia, announced.
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