A Middlesex County resident admitted to defrauding South Korean victims through a fraudulent investment scheme, as announced by Acting U.S. Attorney Vikas Khanna.
Mohammed Rahman, aged 64 from Iselin, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court. He was charged with conspiracy to commit wire fraud.
Rahman controlled Caltech Trading Corporation, a company he claimed dealt in commodities trading. Alongside individuals in South Korea, Rahman convinced about 60 victims to invest funds for the alleged purchase of $1 million worth of sugar from Brazil. The plan was to sell the sugar for profit. However, Rahman and his associates created a fraudulent agreement promising investors a one hundred percent return on their investment. Instead of investing in sugar purchases, the funds were wired into Rahman's bank account and used for personal expenses like his mortgage. He also altered bank statements to hide the misuse of funds.
The charge carries a maximum penalty of 20 years imprisonment and a $250,000 fine. Sentencing is set for May 29, 2025.
Acting U.S. Attorney Khanna acknowledged the efforts of IRS-Criminal Investigation agents led by Special Agent Jenifer Piovesan and Homeland Security Investigations agents under Acting Special Agent Spiros Karabinas in Newark. Appreciation was also extended to the Seoul Metropolitan Police Agency and Seoul Central District Prosecutor’s Office for their assistance.
Assistant U.S. Attorney Jessica R. Ecker from the Health Care Fraud Unit in Newark represents the government.