A Middlesex County man has been sentenced to 27 months in prison for defrauding South Korean investors through a fraudulent commodities investment scheme. U.S. Attorney Alina Habba announced the sentencing of Mohammed Rahman, 64, from Iselin, New Jersey.
Rahman pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Georgette Castner. He operated Caltech Trading Corporation, which he used to convince approximately 60 victims in South Korea to invest in a non-existent sugar purchase from Brazil, promising substantial profits.
The victims were misled by false promises of a one hundred percent return on their investments. Instead of purchasing sugar, Rahman diverted the funds into his personal bank account for expenses such as his mortgage and altered bank statements to hide his actions.
Judge Castner also sentenced Rahman to two years of supervised release and ordered him to pay $1,393,200 in restitution and forfeit $1 million derived from the conspiracy.
U.S. Attorney Habba credited special agents from IRS-Criminal Investigation and Homeland Security Investigations for their work on the case. She also acknowledged assistance from the Seoul Metropolitan Police Agency and the Seoul Central District Prosecutor’s Office.
Assistant U.S. Attorney Jessica R. Ecker represented the government in this case.
Defense counsel was Robert G. Stahl, Esq.
