Warith Deen Muhammad, a 39-year-old McLean resident, has been convicted of a $1.5M precious metals Ponzi scheme in Virginia.
A federal jury found Muhammad guilty of wire fraud and violating the Travel Act relating to the scheme, which began in November 2021 and continued until June 2023.
According to court records, Muhammad falsely told more than a dozen investors that he would use their money to buy, trade, and sell precious metals, guaranteeing profits of five to ten percent and promising to return their principal plus interest within 30 days.
However, Muhammad used new investors’ funds to pay prior investors, creating a false sense of security and inducing them to invest more money and recruit others to do the same. In total, he used fraudulent representations to induce more than 12 investors to send him over $1.5 million.
But Muhammad’s scheme went beyond just paying off investors. He used their money to finance his lavish lifestyle, leasing high-end sports cars like a Ferrari FF, Bentley, and Dodge Challenger Demon, renting luxury properties, and spending tens of thousands of dollars at retailers like Neiman Marcus, Tiffany’s, and Chanel.
Now, Muhammad faces up to 20 years in prison for wire fraud and up to 10 years in prison for violating the Travel Act, with a total of up to 30 years in prison. He is set to be sentenced on May 6.
The FBI Washington Field Office investigated the case, and Assistant U.S. Attorneys Jack Morgan and Zoe Bedell are prosecuting the case.
Warith Deen Muhammad, Niagara Gold and Silver LLC, Wire Fraud, Violating the Travel Act, Alexandria, Virginia, November 2021 – June 2023, Up to 30 years in prison, May 6 sentencing date, $1.5 million loss, FBI Washington Field Office, Assistant U.S. Attorneys Jack Morgan and Zoe Bedell.
Related Federal Cases
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- Robert R Teter, Counterfeit Money Scheme, West Virginia 2024 · New Hampshire
- Wesley Aaron Struble, Kickback Scheme, Virginia 2011 · New York
- Michael W. Kwasnik, $13M Ponzi Scheme, New Jersey 2017 · New York
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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