Major Sapulpa Employer Facing Financial Trouble, Possible Layoffs Amid Lawsuits

Court documents show the largest employer in Sapulpa could be facing financial trouble.

Paragon Industries is a pipe manufacturer in Sapulpa with locations in Texas and Muskogee. Since September, at least two lawsuits have been filed against Paragon for more than $30 million each.

Those lawsuits were filed by steel manufacturer Nucor in Arkansas and Calvert, a steel processor in Illinois.

Both lawsuits say Paragon bought materials from them but never paid for them.

Shortly after the Nucor and Calvert lawsuits others were filed against owner, Derek Wachob.

Two friends of Wachob's in Florida accuse him of creating an investment scheme where they gave him more than $30 million so he could buy steel at a lower cost and then sell it for more.

In that lawsuit, they say they never got any money from him.

A lawsuit filed in Tulsa county on Nov. 1st by friends of Wachob's say they invested $11 million into a property in Missouri.

The lawsuit says those investors never saw any returns. That lawsuit also accuses Wachob of using the investment money to fund his lavish lifestyle.

The lawsuit states Wachob has two helicopters, two private jets, 50 luxury cars, four yachts and several racing boats.

This all comes as WARN letters were sent to some employees at Paragon on Oct. 22nd, telling them to prepare for possible layoffs between Dec. 21st and Jan. 4th.

The letter says in part, "business has slowed down and Paragon has had to reduce its operations." it goes on to say "Any layoffs are expected to be permanent.... We are continuing to work hard to obtain contracts and are in the process of determining our business and workforce needs for the future, with the intention to lay off as few people as possible."