Chief Executive Officer Of Steel Manufacturer Charged With $66 Million Fraud Scheme

Press Release Chief Executive Officer Of Steel Manufacturer Charged With $66 Million Fraud Scheme Tuesday, November 18, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Derek Wachob Defrauded Individual Investors, a Bank, an Investment Firm, and at Least Two Steel Pipe Distributors of More Than $66 Million 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 (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging DEREK WACHOB with wire fraud in connection with his multi-year scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million. WACHOB was arrested today 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 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.”As alleged in the Indictment:[1]From at least in or about October 2022 through in or about August 2024, WACHOB—the Chief Executive Officer of a large manufacturer of steel pipes based in Sapulpa, Oklahoma (“Company-1”)—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. To obtain money from each of the victims, 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 even some of 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.* * *WACHOB, 53, of Sapulpa, Oklahoma, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.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.Mr. 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.The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated November 18, 2025 Attachment u.s._v._wachob_indictment.pdf [PDF, 396 KB] Topics Cybercrime Financial Fraud Component USAO - New York, Southern Press Release Number: 25-241

Press Release Chief Executive Officer Of Steel Manufacturer Charged With $66 Million Fraud Scheme Tuesday, November 18, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Derek Wachob Defrauded Individual Investors, a Bank, an Investment Firm, and at Least Two Steel Pipe Distributors of More Than $66 Million 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 (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging DEREK WACHOB with wire fraud in connection with his multi-year scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million. WACHOB was arrested today 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 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.”As alleged in the Indictment:[1]From at least in or about October 2022 through in or about August 2024, WACHOB—the Chief Executive Officer of a large manufacturer of steel pipes based in Sapulpa, Oklahoma (“Company-1”)—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. To obtain money from each of the victims, 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 even some of 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.* * *WACHOB, 53, of Sapulpa, Oklahoma, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.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.Mr. 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.The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated November 18, 2025 Attachment u.s._v._wachob_indictment.pdf [PDF, 396 KB] Topics Cybercrime Financial Fraud Component USAO - New York, Southern Press Release Number: 25-241