By: Richard L. Smith
A Middlesex County man has been sentenced to over two years in federal prison for orchestrating an international investment fraud scheme that targeted victims in South Korea, according to information released by the U.S. Department of Justice.
Mohammed Rahman, 64, of Iselin, New Jersey, was sentenced to 27 months behind bars after previously pleading guilty to conspiracy to commit wire fraud.
The sentence was handed down by U.S. District Judge Georgette Castner, who also ordered Rahman to serve two years of supervised release following his prison term.
Additionally, Rahman was directed to pay $1,393,200 in restitution to his victims and forfeit $1 million in proceeds gained through the fraudulent scheme.
Federal prosecutors said Rahman operated a company called Caltech Trading Corporation, which he used as a front to claim he was involved in buying and selling commodities.
Along with associates in South Korea, Rahman convinced approximately 60 individuals to invest in what they were led to believe was a legitimate business deal involving the purchase of $1 million worth of sugar from Brazil.
The promise: a full return on their investment federal officials said in the press release.
The victims were lured in through false representations and fraudulent investment agreements that assured them of substantial profits.
However, instead of using the funds for the stated purpose, authorities said Rahman diverted the money into his personal bank account to cover expenses including his mortgage.
To further cover his tracks, Rahman falsified his bank account statements to make it appear as though the investments were being used appropriately, officials said.
This case underscores the importance of due diligence in overseas investment opportunities, as federal authorities continue to hold perpetrators accountable for exploiting victims through elaborate financial schemes.