Iselin Man Sentenced to 27 Months for Defrauding South Korean Investors in Sugar Trade Scam

Mohammed Rahman ordered to pay over $1.3 million in restitution after admitting to wire fraud conspiracy involving bogus commodities investment scheme

A Middlesex County man has been sentenced to more than two years in federal prison for orchestrating a fraudulent investment scheme that deceived dozens of victims in South Korea, federal prosecutors announced on June 4, 2025.

Mohammed Rahman, 64, of Iselin, New Jersey, received a 27-month prison sentence after pleading guilty to conspiracy to commit wire fraud before U.S. District Judge Georgette Castner. In addition to the prison term, Rahman was ordered to serve two years of supervised release, pay $1,393,200 in restitution, and forfeit $1 million in illicit proceeds.

According to court records and statements made during the proceedings, Rahman operated Caltech Trading Corporation, a company he claimed was involved in international commodities trading. In collaboration with associates based in South Korea, Rahman convinced approximately 60 South Korean victims to invest in what he claimed was a deal to purchase $1 million worth of sugar from Brazil, with promises of doubling their money upon resale.

Victims were issued fraudulent investment agreements that guaranteed a 100% return. However, rather than using the funds to buy sugar, Rahman deposited the money into his own bank account and used it to cover personal expenses, including his home mortgage. He also falsified bank statements in an attempt to hide the misuse of the funds.

The investigation was led by IRS-Criminal Investigation, under the supervision of Special Agent in Charge Jenifer Piovesan, and the U.S. Department of Homeland Security, Homeland Security Investigations, led by Special Agent in Charge Ricky J. Patel in Newark. Authorities also credited the Seoul Metropolitan Police Agency and the Seoul Central District Prosecutor’s Office in South Korea for their cooperation in the case.

Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud & Opioids Abuse Prevention Unit in Newark prosecuted the case.

The sentencing marks a conclusion to a scheme that leveraged international financial trust and communications to execute a fraud, affecting victims abroad while operating from within New Jersey.