Virginia man convicted of wire fraud

Staff Reporter: A Virginia man was convicted on Tuesday for wire fraud and executing a precious metals Ponzi scheme, officials said. 

The U.S. Attorney’s Office (USAO) for the Eastern District of Virginia said in a release that 39-year-old Warith Deen Muhammad of McLean started telling over a dozen investors to invest with him and his business, Niagara Gold and Silver LLC (which was based in Alexandria), in November of 2021. 

Muhammad told these investors that he would use the money to buy, trade and sell precious metals, guaranteeing profits of five to 10%. He told investors that they would get their first investment plus interest back within 30 days. 

The USAO said that Muhammad masked the fraud by using new investors’ money to pay prior investors. Former groomer pleads guilty to abuse in connection with dog’s death at Alexandria facility.

Prosecutors say that between November 2021 and June 2023, he got more than 12 investors to send him over $1.5 million. Muhammad also used the funds to fuel a “lavish lifestyle,” according to the USAO, leasing high-end sports cars, renting luxury properties and spending tens of thousands of dollars at retailers. 

He faces up to 20 years in prison for one count of wire fraud and up to 10 years in prison for a Travel Act violation. Muhammad’s sentencing is scheduled for May 6.

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