A federal jury has found Warith Deen Muhammad, 39, of McLean, guilty of wire fraud and violating the Travel Act in connection with a precious metals Ponzi scheme. Muhammad owned and operated Niagara Gold and Silver LLC, an Alexandria-based investment firm.
According to evidence presented at trial, beginning in November 2021, Muhammad solicited more than a dozen investors by promising to use their funds to buy, trade, and sell precious metals. He guaranteed profits ranging from five to ten percent and assured investors they would receive their principal plus interest within 30 days.
The prosecution showed that Muhammad used money from new investors to pay previous ones, creating the appearance of successful investments. This encouraged victims to invest additional funds and recruit others. From November 2021 through June 2023, over $1.5 million was collected from more than twelve investors under false pretenses.
Investigators also revealed that investor money financed Muhammad’s personal expenses. He leased luxury sports cars such as a Ferrari FF, Bentley, and Dodge Challenger Demon. Additionally, he spent large sums on high-end retailers including Neiman Marcus, Tiffany’s, and Chanel.
Muhammad is scheduled for sentencing on May 6. He faces up to 20 years in prison for wire fraud and up to 10 years for violating the Travel Act. Sentencing will be determined by a federal district court judge after considering U.S. Sentencing Guidelines and statutory factors.
The FBI Washington Field Office led the investigation into this case. Assistant U.S. Attorneys Jack Morgan and Zoe Bedell are prosecuting.
“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 or on PACER by searching for Case No. 1:25-cr-284.”
