Paragon CEO Derek Wachob was arrested on Tuesday on wire fraud charges, following an indictment from the Southern District of New York alleging that Wachob defrauded investors, a bank, an investment firm, and at least two steel pipe distributors of at least $66 million.
Federal agents raided the 53-year-old Wachob’s home as witnesses at the scene reported seeing an armored vehicle and a number of other unmarked vehicles enter the compound before Wachob was eventually led away to face arraignment at the Tulsa Federal Courthouse.
Video from News On 6 shows agents making their way in and around the house:
According to a press release by the US Attorney’s Office, Wachob claimed to be a billionaire and successful CEO, but U.S. Attorney Jay Clayton said “that image was built on lies.”
“He stole more than $66 million from a range of victims that included some of his closest friends, then used those funds to maintain a lifestyle of expensive cars, vacation homes, private jets, helicopters, and yachts,” Clayton said.
FBI Assistant Director in Charge Christopher G. Raia said that Wachob “allegedly abused his authority as CEO to entice his targets with a mirage of success while shrouding the truth in deceit.”
“Derek Wachob allegedly stole at least $66 million from investors, including some of his closest friends, and financial institutions to secretly fund his failing company and extravagant lifestyle through false promises of profitable business ventures,” said Raia said.
The indictment is the latest in over 2 years of legal troubles for the embattled CEO. Paragon entered into a court-mandated receivership in March, and federal authorities seized Wachob’s yacht in September.
