The CEO of Paragon Industries, Derek Wachob, was arrested in Sapulpa, Oklahoma, on Tuesday morning on a federal wire fraud charge, the FBI confirmed.
According to an unsealed federal indictment, Wachob allegedly orchestrated a scheme to defraud investors, a bank, an investment firm, and two steel pipe distributors of approximately $66 million between October 2022 and August 2024.
Authorities say Wachob misled victims by falsely promising business opportunities tied to future steel purchases. Instead of using the funds as promised, he allegedly spent the money to maintain an extravagant lifestyle, including luxury cars, private jets, yachts, and vacation homes, while his company struggled financially. Paragon Industries reportedly filed for bankruptcy in May 2025.
From 2023 to 2024, Wachob is accused of obtaining more than $41 million from investors through misrepresentations and lies, and of deceiving a Texas bank with a $10 million loan request. Court documents also allege that he defrauded two steel pipe distributors of $7.4 million and misrepresented a $7.3 million loan from an investment firm.
Wachob faces one count of fraud by wire, radio, or television, which carries a maximum sentence of 20 years in prison. The prosecution is being handled by the U.S. Attorney’s Office Complex Frauds and Cybercrime Unit, led by Assistant U.S. Attorneys Danielle Kudla and Adam Sowlati.
U.S. Attorney Jay Clayton stated:
“Derek Wachob claimed to be a billionaire and successful CEO, but as alleged, that image was built on lies. He stole more than $66 million from a range of victims, including some of his closest friends, to fund a lavish lifestyle.”
FBI Assistant Director in Charge Christopher G. Raia added:
“Wachob allegedly abused his authority as CEO to entice targets with a mirage of success while shrouding the truth in deceit. The FBI remains committed to investigating business leaders who siphon from trusting victims.”
FOX23 has reached out to Paragon Industries for comment but has not received a response. Updates will be provided as the case develops.
