A Middlesex County man has been sentenced to 27 months in prison for defrauding South Korean victims through a fraudulent investment scheme. Mohammed Rahman, 64, from Iselin, New Jersey, was sentenced after pleading guilty to conspiracy to commit wire fraud. The sentence was handed down by U.S. District Judge Georgette Castner.
Rahman operated Caltech Trading Corporation and convinced around 60 South Korean investors to invest in a supposed $1 million sugar purchase from Brazil. The investors were promised a full return on their investment through fraudulent agreements. Instead of using the funds as promised, Rahman used them for personal expenses such as his mortgage and altered bank statements to hide his actions.
In addition to the prison sentence, Rahman received two years of supervised release and must pay $1,393,200 in restitution. He also faces forfeiture of $1 million obtained from the scheme.
U.S. Attorney Alina Habba credited the investigation efforts of IRS-Criminal Investigation special agents led by Special Agent Jenifer Piovesan and Homeland Security Investigations under Special Agent Ricky J. Patel in Newark. Assistance from the Seoul Metropolitan Police Agency and the Seoul Central District Prosecutor’s Office was also acknowledged.
The case is being prosecuted by Assistant U.S. Attorney Jessica R. Ecker from the Health Care Fraud & Opioids Abuse Prevention Unit in Newark.
Defense counsel for Rahman is Robert G. Stahl, Esq.
