A Middlesex County man has admitted to defrauding victims in South Korea through a fraudulent investment scheme, according to Acting U.S. Attorney Vikas Khanna.
Mohammed Rahman, 64, from Iselin, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court. He faced charges of conspiracy to commit wire fraud.
Court documents and statements revealed that Rahman controlled Caltech Trading Corporation, which he used to purportedly trade commodities. Along with associates in South Korea, he convinced around 60 individuals to invest in what was claimed to be a $1 million sugar purchase from Brazil. The company promised substantial profits from the sale of this sugar. However, instead of investing the funds as promised, Rahman diverted them into his personal bank account for personal expenses like his mortgage.
The fraudulent agreement falsely assured investors of a full return on their investments. To hide his actions, Rahman altered his bank statement to show the funds were used for sugar purchases when they were not.
The charge carries a maximum penalty of 20 years imprisonment and a $250,000 fine. Sentencing is set for May 29, 2025.
Khanna credited special agents from IRS-Criminal Investigation led by Special Agent Jenifer Piovesan and Homeland Security Investigations under Acting Special Agent Spiros Karabinas for their work on the case. The Seoul Metropolitan Police Agency and Seoul Central District Prosecutor’s Office also assisted.
Assistant U.S. Attorney Jessica R. Ecker from Newark's Health Care Fraud Unit represents the government in this case.
Rahman's defense counsel is Robert G. Stahl.
