Derek Wachob, 53, the chief executive officer of a large steel pipe manufacturer based in Sapulpa, Oklahoma, pleaded guilty on Monday to wire fraud for orchestrating a scheme to defraud individual investors, a bank, an investment firm, and at least two steel pipe distributors of more than $66 million from October 2022 through August 2024. Wachob faces a maximum sentence of 20 years in prison.
According to court filings, Wachob falsely claimed to offer business opportunities based on future steel purchases he pledged to make, using these misrepresentations to extract millions of dollars from victims including some of his closest friends. Rather than deploying the funds as promised, Wachob diverted the money to finance an extravagant personal lifestyle and prop up his financially struggling company.
“Derek Wachob portrayed himself as a billionaire and accomplished CEO, but the success he projected was a fiction sustained by fraud,” said U.S. Attorney Jay Clayton. “He defrauded victims—including some of his closest friends—of more than $66 million and used their money to bankroll a lifestyle of luxury cars, vacations homes, private jets, helicopters, and yachts.”
Wachob spent the stolen funds on expensive cars, vacation homes, private jets, helicopters, and yachts, while also using the diverted money to service debt and keep Company-1 afloat despite its deteriorating financial condition. The scheme spanned nearly two years before authorities intervened.
“In New York, we celebrate ambition, hard work, and honest achievement,” Clayton added. “These are bedrock principles that fueled the growth of our great city. Fraudsters undermine those principles and erode the trust in the fairness of our society. Today’s guilty plea sends a message that fraud will not be tolerated and ensures Wachob faces the consequences of his lies.”
Wachob, a resident of Sapulpa, Oklahoma, pleaded guilty to one count of wire fraud before U.S. District Judge J. Paul Oetken. He is scheduled to be sentenced on November 17, 2026. The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit, with Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati in charge.
