NJ man admits defrauding 60 people in bogus sugar scheme

A Middlesex County man has admitted defrauding victims in South Korea through a bogus investment scheme involving sugar.

Yes, sugar.

64-year-old Mohammed Rahman of Iselin pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to one count of conspiracy to commit wire fraud.

Federal authorities say Rahman controlled a company, Caltech Trading Corporation, through which he purported to buy and sell commodities.

Rahman and others in South Korea persuaded around 60 people there to invest money purportedly towards the purchase of $1 million of sugar from Brazil, which Caltech would then sell for a substantial profit, and the investors would receive a 100% return on their investment.

Instead of investing in the sweet substance, Rahman used the money for personal expenses, including to make mortgage payments. Officials also said Rahman altered his bank account statement in an attempt to conceal the fact that he did not use the investors’ funds to purchase sugar.

Rahman now faces up to 20 years in prison and a $250,000 fine when he is sentenced on May 29th.