United States Attorney for the Southern District of New York, Jay Clayton, and FBI Assistant Director in Charge of the New York Field Office, Christopher G. Raia, announced that an indictment has been unsealed charging Derek Wachob with wire fraud. Wachob, the CEO of a large steel pipe manufacturing company based in Sapulpa, Oklahoma, is accused of defrauding individual investors, a bank, an investment firm, and at least two steel pipe distributors out of at least $66 million.
Wachob was arrested in Sapulpa and will appear before a judge in the Northern District of Oklahoma. The case is assigned to 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.”
“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.”
According to allegations in the indictment, between October 2022 and August 2024 Wachob misled victims by promising future business opportunities tied to steel purchases he pledged to make but did not fulfill these commitments. Instead of using the money as promised, he reportedly spent it on personal luxuries and propping up his financially troubled company.
Wachob faces one count of wire fraud which carries a maximum sentence of 20 years in prison if convicted; however actual sentencing would be determined by a judge.
The investigation was conducted by the FBI with assistance from the U.S. Attorney’s Office for the Northern District of Oklahoma. The prosecution is being handled by Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati from the Complex Frauds and Cybercrime Unit.
The charges are allegations only; Wachob is presumed innocent unless proven guilty.
