SALT LAKE CITY, Utah, Nov. 16, 2018 (Gephardt Daily) — A rare coin and precious metals dealer with a business in Salt Lake City has been charged in connection with an alleged $170 million Ponzi scheme.
Defendants Gaylen Dean Rust, of Layton, and the company he owns, Rust Rare Coin, Inc., in Salt Lake City, have been charged in a case brought by the U.S. Commodity Futures Trading Commission (CFTC) and the Utah Department of Commerce, Division of Securities, which jointly filed a civil enforcement action in the U.S. District Court for the District of Utah, Central Division.
“The complaint charges Rust and his company RRC with defrauding at least 200
individuals — from Utah and at least 16 other states — and fraudulently obtaining more than $170 million from investors since May 2013 in a precious metals Ponzi scheme,” says a statement released by the CFTC.
According to the complaint, the defendants’ fraud is ongoing.
“In the first eight months of 2018, the defendants received at least $42 million from investors in a pool that purportedly bought and sold silver,” the statement says. “The Defendants also attempted to solicit new investors in this pool at least as recently as October 8, 2018.”
The court has frozen the assets of Rust and Rust Rare Coin, Inc.
CFTC Director of Enforcement James McDonald commented in the prepared statement:
“As alleged, for at least a decade, the Defendants defrauded their friends, customers, and business associates out of more than $170 million. The Defendants allegedly concealed their fraud with false account statements and Ponzi payments; however, their scheme was brought to light through the combined efforts of the CFTC and our law enforcement partners.”
To read the full statement, click here.
