Middlesex County Man Pleads Guilty to South Korean Investment Fraud Scheme

Defendant falsely promised a 100% return on sugar commodity investments, using victims’ funds for personal expenses.

A 64-year-old Iselin resident has admitted to orchestrating a multi-victim fraud scheme that targeted South Korean investors, Acting U.S. Attorney Vikas Khanna announced. Mohammed Rahman pleaded guilty before U.S. District Judge Georgette Castner to one count of conspiracy to commit wire fraud in connection with an alleged bogus sugar investment plan.

• Investment Claims: Rahman—through his company, Caltech Trading Corporation—misrepresented that he would use investments to purchase $1 million in sugar from Brazil and then resell for a profit.
• Fraudulent Terms: Roughly 60 victims in South Korea were promised a 100% return on their investment, as documented in a fraudulent contract.
• Misuse of Funds: Instead of purchasing sugar, Rahman “used the investors’ money to pay personal expenses, including his mortgage.” He also altered his bank statements to conceal that no legitimate investment was made.

Rahman faces a maximum of 20 years in prison and a $250,000 fine for the wire fraud conspiracy. Sentencing is scheduled for May 29, 2025.

Acting U.S. Attorney Khanna credited the joint efforts of:

• IRS-Criminal Investigation, under Special Agent in Charge Jenifer Piovesan
• U.S. Department of Homeland Security, Homeland Security Investigations, under Acting Special Agent in Charge Spiros Karabinas
• Authorities in South Korea, including the Seoul Metropolitan Police Agency and Seoul Central District Prosecutor’s Office

The case is being prosecuted by Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud Unit in Newark.