CFTC, Utah Coin $170m Ponzi

On Nov. 16, CFTC, Utah charged dealer with $170mn metals Ponzi.

  • Gaylen Rust, Rust Rare Coin charged for obtaining $170mn from 200 investors.
  • Charges brought with Utah Department of Commerce, Utah's Attorney General.

Alleged Violations

  • Jan.-Aug. 2018 fund received up to $42mn for a pool supposedly trading silver.
  • Attempted to solicit new investors in this pool at least as recently as Oct. 2018.
  • Defendants told investors and prospective clients, that trading silver generated
    huge profit, averaging 20 to 25%, sometimes as high as 40% per year or more.
  • Sent investors false account statements, showed each trade as being profitable.
  • Showed that pool had $77 to $80mn in silver, which was stored at Brink’s, Inc.
  • Funds stolen to pay other investors, transferred to companies that Rust owned.
  • In first eight months of 2018, defendants received over $42mn from investors.


  • US district court judge in Utah, entered restraining order freezing the assets of
    defendant, to permit CFTC and the State of Utah to inspect all relevant records
  • Ongoing litigation seeks repayment of fraudulent gains, penalty and restitution.
  • Permanent registration, trading ban; court froze assets and appointed receiver.