Derek Wachob Lawsuit: Wire Fraud, $30M Judgment, and Bankruptcy

The Derek Wachob lawsuit landscape now spans a federal wire fraud prosecution in Manhattan and a stack of civil cases in Florida, Oklahoma, Illinois, and Arkansas, all tied to the collapse of Sapulpa, Oklahoma steel pipe manufacturer Paragon Industries. Federal prosecutors accuse Wachob, Paragon’s CEO, of a $66 million fraud scheme; civil plaintiffs have won or are pursuing tens of millions more; and the company itself is in Chapter 11 bankruptcy.¹

The Federal Wire Fraud Charge

Wachob was charged in the Southern District of New York with one count of wire fraud on November 18, 2025. The indictment alleges that from roughly October 2022 through August 2024, he solicited money by promising business opportunities tied to future steel purchases, then used the funds to prop up Paragon and to pay for private jets, helicopters, yachts, vacation homes, and expensive cars.¹

Prosecutors break the alleged losses into pieces. More than $41 million came from individual investors, some of them close friends of Wachob, through misrepresentations. About $7.4 million came from two steel pipe distributors. A $7.3 million loan from an investment firm and a $10 million loan sought in January 2024 from a Texas bank were both allegedly obtained on false pretenses.²

The count carries a maximum of 20 years in prison. The case is being handled by the U.S. Attorney’s Complex Frauds and Cybercrime Unit and assigned to Judge J. Paul Oetken.¹

Arrest, Bond, and Where the Criminal Case Stands

Federal agents took Wachob into custody at his Sapulpa home on the morning of November 18, 2025. A local reporter watched an armored vehicle and unmarked cars arrive before agents led him out.³ He was arraigned in Tulsa and released on a $1 million bond with travel restrictions.⁴

The case, docketed as 25-CR-508, remained in its pretrial phase into 2026, with a pretrial conference set for April 1, 2026, before Judge Oetken in Manhattan. No plea or trial date has been publicly reported.⁵

Braver v. Wachob: The $30 Million Judgment

The largest civil case comes from Skip Braver and Chad Braver, who sued in the U.S. District Court for the Southern District of Florida. They alleged Wachob drew them into a fraudulent scheme to buy and resell industrial rolled steel, took more than $30 million for steel procurement that never produced returns, and spent the money on a lavish lifestyle.⁶

The complaint named Wachob along with Global Source Recycling Company, Wachob Properties, The Olympia of Destin, and the Wachob Irrevocable Trust Dated July 21, 2011. A settlement required Wachob to pay $26 million by June 27, 2025. That deadline passed with only about $547,000 paid by the Wachob Trust. The court found a material breach and entered final judgment of roughly $30.97 million for Skip Braver and about $291,840 for Chad Braver, with the defendants jointly and severally liable.⁷

Collection began quickly. In September 2025, authorities seized Wachob’s 108-foot yacht The Abigail, valued at $4.15 million, from Florida under a federal court order. The Bravers also filed a foreign judgment notice in Creek County, Oklahoma, targeting his bank accounts and other property.⁸

The $11 Million Tulsa Investor Suit

A separate civil action came from three investors with ties to performance boating. Mark Schouten, Jacob Nossaman, and Zane Mead alleged in a November 2024 filing that they each invested $3 million with Wachob for a steel purchase, with Schouten putting in an additional $2 million. They said Wachob never proved the investment was legitimate and never returned their money, accusing him of diverting funds to support two private jets, two helicopters, four luxury yachts, and at least 50 luxury and classic cars.⁹ The plaintiffs refiled in Tulsa County on January 2, 2025. The case remained active with no reported resolution as of late 2025.⁸

Supplier and Lender Suits Against Paragon

Paragon itself was hit with a wave of commercial claims that helped push the company toward insolvency.

AM/NS Calvert sued on September 27, 2024, in the Northern District of Illinois, seeking $31.5 million plus interest. It alleged Paragon bought more than $15 million in product between January 2023 and May 2024 without paying and that a separate consignment arrangement caused an additional $16 million in losses.¹⁰

Nucor Corporation followed on October 3, 2024, in the Eastern District of Arkansas, alleging unpaid invoices. That case was stayed in June 2025 after Paragon’s bankruptcy filing.¹¹

TLLP, LLC filed a $7.6 million suit on September 10, 2024, alleging that Global Source Recycling, a Wachob-linked entity, defaulted on a loan and failed to deliver collateral stored on Paragon-owned land in Muskogee, Oklahoma.¹⁰

Receivership and Chapter 11 Bankruptcy

Paragon had borrowed $18.5 million from Byline Bank through four promissory notes signed in December 2020, secured by a mortgage on its Sapulpa facility. The company and Wachob missed payments for seven straight months and failed to provide required financial statements.¹²

On March 13, 2025, a Creek County judge appointed C. David Rhoades as receiver. Rhoades quickly petitioned to remove Paragon’s board, and the court granted the request.¹²

On May 22, 2025, Paragon filed Chapter 11 in the Eastern District of Oklahoma, listing assets and liabilities each between $100 million and $500 million. In an affidavit, Wachob said the company was defending 15 lawsuits and needed a centralized forum.¹³ In February 2026, Paragon moved for approval to sell substantially all of its assets to Integrated Utility Services LLC for $40 million: $35.9 million for equipment, $2.5 million for buildings, and $1.6 million for land.¹⁴

The bankruptcy remained active in mid-2026. Paragon had filed a fourth motion to extend the exclusivity period, with a hearing set for August 12, 2026, and a U.S. Trustee motion to appoint a trustee was pending.¹⁵

Fallout for Workers in Sapulpa

Paragon had been the largest employer in Sapulpa, with a workforce that once topped 400. In October 2024, the company issued WARN Act notices warning of potential permanent layoffs between late December 2024 and early January 2025.¹⁶ Mass layoffs followed that December. In early 2025, workers reported going weeks without pay.¹⁷ By the bankruptcy filing, the workforce was down to 74, with a weekly hourly payroll of about $55,000.¹³ A manufacturing job fair was organized in Sapulpa by April 2025 to help displaced workers find new employment.¹⁸

1
U.S. Department of Justice. Chief Executive Officer of Steel Manufacturer Charged in $66 Million Fraud Scheme
2
FOX23 News. CEO of Paragon Industries Arrested in Sapulpa on Federal Wire Fraud Charges
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Sapulpa Times. Paragon CEO Derek Wachob Arrested, Charged in $66 Million Fraud Scheme
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NEWSON6. Paragon Industries CEO Derek Wachob Arrested on Wire Fraud Complaints
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U.S. District Court for the Southern District of New York. Proceedings Calendar
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Speed on the Water. Former Cigarette Company Owner and Son File $30 Million Lawsuit Against Former Customer
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CaseMine. Braver v. Wachob, Case No. 24-cv-24048
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NEWSON6. Authorities Seize Yacht Owned by Paragon Industries Owner Amid Multi-Million Dollar Legal Battle
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Speed on the Water. Performance Boat Enthusiast Trio Brings Suit Against Wachob and Related Companies
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NEWSON6. Timeline: Paragon Industries Faces Financial Issues, Lawsuits
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CourtListener. Nucor Corporation v. Paragon Industries Inc
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NEWSON6. Paragon Industries in Court-Mandated Receivership Amid Financial Issues
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Chapter 11 Cases. Pipe Manufacturer Paragon Industries Files Chapter 11, Plans Sale of Business
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Chapter 11 Cases. Paragon Industries Seeks Court Approval for $40 Million Asset Sale to Integrated Utility Services
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PacerMonitor. Paragon Industries, Inc
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NEWSON6. Major Sapulpa Employer Facing Financial Trouble, Possible Layoffs Amid Lawsuits
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NEWSON6. “I Put My Heart Into the Company” — Sapulpa Man Afraid to Lose Everything After Not Getting Paid
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NEWSON6. Paragon Industries