SAPULPA, Okla. — Derek Wachob, CEO of Paragon Industries in Sapulpa, was arrested for federal wire fraud charges.
2 News confirmed the arrest through the U.S. Attorney's Office in the Southern District of New York.
The indictment alleges that Wachob defrauded investors, businesses and even close personal friends of over $66 million from 2022-24.
WATCH: Sapulpa-based Paragon Industries CEO arrested on federal charges
It says the 53-year-old promised future business deals with the steel pipe company in exchange for money. Instead, Wachob used the money to buy things like yachts, vacation homes, helicopters, and more.
Federal agents surrounded Wachob's property, just west of Paragon Industries near 121st and 49th West Avenue in Sapulpa.
In a statement, U.S. Attorney Jay Clayton said "Derek Wachob claimed to be a billionaire and successful CEO, but as alleged, that image was built on lies."
Paragon Industries had filed for bankruptcy earlier in 2025, and had multiple lawsuits already filed against them totaling hundreds of millions of dollars.
The indictment says Wachob must forfeit all assets claimed from the fraudulent money, and if convicted could serve as much as 20 years in federal prison.
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