McLean Exec Convicted Of Running $1.5M Precious Metals Ponzi Scheme

ALEXANDRIA, VA — A McLean man who used investor funding to lease high-end sports cars, including a Ferrari FF, Bentley, and Dodge Challenger Demon, was convicted in federal court on Tuesday of wire fraud for operating a precious metals Ponzi scheme, according to court documents.

Beginning in November 2021, Warith Deen Muhammad, 39, who owned and operated Alexandria-based Niagara Gold and Silver LLC, falsely told more than a dozen investors that he would use their money to buy, trade, and sell precious metals, according to court records. He guaranteed a 5 to 10 percent profit from these investments, and that investors would receive their principal plus interest back 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," according to court documents. "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."

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In addition to paying prior investors, Muhammad used the money he received to finance a lavish lifestyle, court records say. Not only did he lease Bentleys and Ferraris, Muhammad spent hundreds of thousands of dollars to rent luxury properties, and tens of thousands of dollars at retailers, including Neiman Marcus, Tiffany’s, and Chanel, among others.

Muhammad is due back in court on May 6 for sentencing. He faces a possible prison sentence of 20 years on the wire fraud charges, court records say. He was also convicted of violating the Travel Act in connection to the precious metals Ponzi scheme. That conviction carries a potential penalty of 10 years in prison.