Sapulpa Pipe CEO Arrested on $66M Federal Fraud Charges
Federal authorities arrested Derek Wachob, the CEO of the oil and gas pipeline supplier based in Sapulpa, on charges of federal wire fraud.
The U.S. Attorney’s Office in the Southern District of New York confirmed the arrest and explained the charges were that Wachob, 53, had defrauded investors, businesses and close friends of more than $66 million during the period of 2022 through 2024. He stands accused of using the money to buy yachts, vacation homes, two helicopters, private jets, and even million-dollar race boats. Among the victims were a Texas bank and an investment firm. Two steel pipe distributors were also listed among those who lost money.
Federal Agents Arrest Wachob at His Sapulpa Mansion
Federal agents surrounded his Sapulpa mansion located just west of the Paragon Industries headquarters. Wachob went before a Tulsa federal judge and was released on a $1 million bond with travel restrictions. He is set to make an appearance on November 25 in a New York U.S. District Court.
The federal indictments allege Wachob’s fraud started when the company began having financial problems and eventually filed for bankruptcy.
Indictment Details Financial Collapse and Alleged Scheme
“For years, Company-1 was a successful business, and DEREK WACHOB, the defendant, presented himself as a ‘billionaire’ who owned a private jet, two helicopters, million dollar race boats, a compound and homes across the country. Beginning in or about 2022, however, Company-1 began facing financial distress, eventually struggling to pay vendors and make payroll for its hundreds of employees. In or about May 2025, Company-1 filed for bankruptcу,” stated the indictment, signed by U.S. Attorney Jay Clayton.
“In the wake of Company-1’s financial trouble, between in or about 2023 through 2024, DEREK WACHOB, the defendant, through misrepresentations and lies, sought and obtained more than $41 million from individual investors (the ‘Victim Investors’). WACHOB falsely represented to the Victim Investors, which included some of WACHOB’s closest friends, that: he would invest their money to buy steel through another entity associated with WAСНОВ (‘Company-2’); he would be a partner in the investment; he would leverage his connections to purchase the steel at a discount and quickly resell it; and there would be a guaranteed profit for the Victim Investors because Company-1 would purchase any steel that was not sold,” it further charged.
Yacht Seizure Accelerates Investigation
Much of the alleged investment fraud came unraveled in September when federal agents in Florida seized Wachob’s luxury yacht, named The Abigail. The raid was part of a federal judgment enforcement after the pipeline executive failed to repay more than $30 million to former investors.
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