McLean Exec Sentenced In Federal $1.5M Precious Metals Fraud Case

Federal prosecutors said more than 12 investors sent over $1.5 million after promises of quick profits.

By Michael O'Connell, Patch Staff

May 7, 2026 9:43 am EDT

ALEXANDRIA, VA — An Alexandria-based precious metals investment firm owner was sentenced Wednesday to four years and two months in prison after a federal conviction for wire fraud and violating the Travel Act, according to the U.S. Attorney’s Office for the Eastern District of Virginia.

Warith Deen Muhammad, 39, of McLean, owned and operated Niagara Gold and Silver LLC, an Alexandria-based firm, according to court records. The sentence followed evidence presented at trial and court records tied to the case.

According to court records and evidence presented at trial, beginning in November 2021, Muhammad falsely told more than a dozen investors that if they invested with him and his business, he would use their money to buy, trade, and sell precious metals. The U.S. Attorney’s Office said Muhammad guaranteed profits of 5 to 10 percent and told investors they would receive their principal plus interest back, typically within 30 days.

Muhammad used money from new investors to pay earlier investors, which made it appear their investments had been successful, according to court records. Prosecutors said that representation led people to invest additional money and recruit others. From November 2021 through June 2023, Muhammad used fraudulent representations to induce more than 12 investors to send him over $1.5 million, according to court records and evidence presented at trial.

The U.S. Attorney’s Office also said Muhammad used investor funds to support an expensive lifestyle. He leased high-end sports cars including a Ferrari FF, Bentley, and Dodge Challenger Demon. Prosecutors also said he paid hundreds of thousands of dollars to rent luxury properties and spent tens of thousands of dollars at retailers including Neiman Marcus, Tiffany’s, and Chanel.

The FBI Washington Field Office investigated the case, which was prosecuted by Assistant U.S. Attorney Jack Morgan and former Assistant U.S. Attorney Zoe Bedell, according to a release.