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 Derek Wachob, CEO of a steel pipe manufacturing company based in Sapulpa, Oklahoma, has been charged with wire fraud. The indictment alleges that Wachob defrauded individual investors, a bank, an investment firm, and at least two steel pipe distributors out of at least $66 million over several years.
Wachob was arrested in Sapulpa and is scheduled 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 the indictment allegations—which are not proof—Wachob’s scheme took place between October 2022 and August 2024 while he served as CEO at Company-1 in Sapulpa. He reportedly misled victims by offering fake business opportunities related to future steel purchases he claimed would occur. Instead of using investor money as promised for these ventures or company needs as described to them, he spent it on personal luxury items and attempted to support Company-1 during its financial difficulties.
Wachob faces one count of wire fraud with a maximum sentence of 20 years if convicted; sentencing decisions will ultimately be made by the presiding judge.
Jay Clayton acknowledged the FBI’s efforts on this case and thanked the U.S. Attorney’s Office for the Northern District of Oklahoma for their assistance.
The prosecution is being managed by Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati from the Complex Frauds and Cybercrime Unit.
The charges are accusations only; Wachob is presumed innocent unless proven guilty.
