McLean executive convicted at trial for $1.5M precious metals Ponzi scheme

ALEXANDRIA, Va. – A federal jury convicted the owner and operator of an Alexandria-based precious metals investment firm yesterday on charges of wire fraud and violating the Travel Act relating to a precious metals Ponzi scheme.

According to court records and evidence presented at trial, beginning in November 2021, Warith Deen Muhammad, 39, of McLean, falsely told more than a dozen investors that if they invested with him and his business, Niagara Gold and Silver LLC, he would use their money to buy, trade, and sell precious metals. Muhammad guaranteed profits of five to ten percent and told investors that they would receive their principal plus interest back, typically within 30 days.

To mask the fraud, Muhammad used new investors funds to pay prior investors, leading investors to believe that their investment had been “successful,” inducing them to invest more money and to recruit others to invest. In total, from November 2021 through June 2023, Muhammad used fraudulent representations to induce more than 12 investors to send him over $1.5 million.

In addition to spending investor money to pay prior investors, Muhammad also used investor funds to finance his lavish lifestyle. He leased high-end sports cars, including a Ferrari FF, Bentley, and Dodge Challenger Demon. He paid hundreds of thousands of dollars to rent luxury properties, and he spent tens of thousands of dollars at retailers, including Neiman Marcus, Tiffany’s, and Chanel, among others.

Muhammad faces up to 20 years in prison for count of wire fraud and up to 10 years in prison for Travel Act violation when sentenced on May 6. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Washington Field Office investigated this case.

Assistant U.S. Attorneys Jack Morgan and Zoe Bedell are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-284.