Precious metals Ponzi scheme operator sentenced to over four years in prison

ALEXANDRIA, Va. – The owner and operator of an Alexandria-based precious metals investment firm was sentenced today to four years and two months in prison for wire fraud and violating the Travel Act.

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.

The FBI Washington Field Office investigated this case.

Assistant U.S. Attorney Jack Morgan and former Assistant U.S. Attorney Zoe Bedell prosecuted the case.

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.