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