A man in McLean, Va. is convicted of running a ponzi scheme. Warith Deen Muhammad faces up to 30 years for wire fraud and violating the Travel Act.

Muhammad owned a precious metal company named Niagara Gold and Silver LLC, based in Alexandria, Va. He promised his clients a 5% to 10% return on their investments in under 30 days.

“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 his business, he would use their money to buy, trade, and sell precious metals,” said the United States Attorney’s Office in a press release.

No precious metals were bought, sold, or traded, like Muhammad claimed to his investors.

Muhammad would use the money his new clients invested in his company to pay his original investors. This would cause his clients to believe they were making money. This tactic is known as a ponzi scheme and is a form of fraud.

A total of 12 people invested roughly $1.5 million in Niagara Gold and Silver LLC. He would spend the excess money on luxury items.

“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,” said the United States Attorney’s Office in a press release.

Niagara Gold and Silver LLC operated from Nov. 2021 to June 2023. On Feb. 4, Muhammad was convinced by a jury for wire fraud and violating the travel act. 

Wire Fraud is when one uses the internet or a telephone to defraud a person or business. The Travel Act prevents interstate travel when engaging in unlawful activity. 

Muhammad faces up to 20 years for wire fraud and 10 for violating the travel act. He will be sentenced on May 6, 2026.