The Chief Executive Officer of a steel manufacturer, Derek Wachob, has pleaded guilty to orchestrating a multi-year fraud scheme that defrauded individual investors, a bank, an investment firm, and at least two steel pipe distributors of over $66 million. Wachob, 53, of Sapulpa, Oklahoma, admitted to wire fraud charges before U.S. District Judge J. Paul Oetken. The scheme, spanning October 2022 to August 2024, involved false claims about business opportunities to secure funds, which he used for personal luxury expenses and to sustain a financially struggling company. Wachob faces a maximum 20-year sentence and is scheduled for sentencing on November 17, 2026. The prosecution, led by the Complex Frauds and Cybercrime Unit, highlighted the fraudulent misrepresentations and the misuse of victims’ funds. U.S. Attorney Jay Clayton emphasized the importance of holding fraudsters accountable.
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