ALEXANDRIA, Va. — The owner and operator of an Alexandria-based precious metals investment firm was sentenced Wednesday to four years and two months in federal prison for running a $1.5 million Ponzi scheme, the U.S. Attorney’s Office for the Eastern District of Virginia announced.
Warith Deen Muhammad, 39, of McLean, was convicted by a federal jury on Feb. 4 of wire fraud and violating the Travel Act, which bars interstate travel in furtherance of unlawful activity. The sentence was handed down at the Albert V. Bryan U.S. Courthouse in Alexandria.
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, Niagara Gold and Silver LLC, he would use their money to buy, trade and sell precious metals. He guaranteed profits of 5% to 10% and told investors they would receive their principal plus interest back, typically within 30 days, prosecutors said…