![]() ![]() The Rusts are accused of tricking people into believing they were pooling their money to buy and sell silver bullion, but the funds were allegedly used to pay other investors.ĭenise Rust admitted that she was aware that Gaylen Rust had misrepresented to investors that their money would be used to buy and trade silver. Joshua Rust managed the coin shop from 2004 to 2018.įederal prosecutors say the company defrauded at least 700 investors nationwide of at least $200 million. Denise Rust was listed as the secretary for Rust Rare Coin. Legacy Racing Inc., R Legacy Investments LLC, R Legacy Ranch, and Legacy Music Alliance. Gaylen Rust owned and managed Rust Rare Coin Inc., R Legacy Entertainment LLC, R. Denise Rust and Joshua Rust were each charged with one count of money laundering. Gaylen Rust is also charged with two counts of securities fraud. Huber said in a statement. “We remain committed to seek justice for the nearly 700 victims who have suffered catastrophic economic consequences from this fraud.”Ī federal grand jury returned an indictment last year against Gaylen Rust, 59, his wife, Denise Rust, and their son, Joshua Rust, 37, of Draper, in connection with an alleged Ponzi scheme.Īll three were charged with wire fraud and money laundering conspiracy. “Denise Rust participated in one of largest and most financially destructive frauds Utah has ever seen,” U.S. ![]() The payment was unrelated to the silver trading program, according to federal authorities. She described herself as an “unwitting pawn in Gaylen’s world” during her sentencing hearing.SALT LAKE CITY - One member of a Utah family that ran a well-known rare coin business accused of running a $200 million silver trading scam has pleaded guilty to money laundering in federal court.ĭenise Gunderson Rust, 60, of Layton, admitted to transferring $12,000 from a bank account in Utah, where investor money was pooled, to her daughter in Alaska. In June 2020, Denise Rust, 61, pleaded guilty to a money laundering charge, and she was later sentenced the following September to 18 months in prison with three years of supervised release. However, his sentence will more likely be up to 18 months in prison or five years of probation. The document indicates Joshua Rust could face a maximum prison sentence of up to three years, a $250,000 fine and three years of supervised release. In addition to Rust’s sentencing on Tuesday, his son Joshua Rust, 39, pleaded guilty to misprison of wire fraud conspiracy, according to a statement in advance of his plea. “Those who defraud their family, friends and associates out of their hard-earned savings will be held accountable.” Attorney’s Office is committed to prosecuting financial crimes,” said Utah U.S. “We hope that a 19-year prison sentence and an order to pay over $153 million sends a message to the community that the U.S. Some investors would later file a lawsuit against Zions Bank, alleging the bank helped Rust continue the fraud scheme. Rust also admitted that in January 2016 he opened three personal accounts at Zions Bank and used the accounts to launder roughly $18 million. Charging documents allege that Rust diverted investor money for his personal businesses or his personal use. In reality, Rust had little to no silver and had not stored silver since 2016. Attorney’s Office said Rust told investors that by using algorithms, he never had a month where he lost money, and that even the worst year yielded a 12% return. Over the years, investors gave Rust around $225 million, though Rust admitted that he used money from newer investors to pay older investors - the hallmark of a Ponzi scheme - and give the appearance that the trading program was profitable. Rust told investors he could make money by the buying and selling of silver bullion and that 100% of investor funds would go toward the buying of silver. In 2008, Rust began a “silver trading program” that was fraudulent and operated as a Ponzi scheme, according to the U.S. In a plea agreement, Rust admitted that he owned and operated Rust Rare Coin in Salt Lake City from 2002 until 2018. ![]() “Without trust, individuals aren’t willing to participate in future opportunities and that affects our entire economy.” “Ponzi schemes absolutely destroy trust in the investment industry,” said Margaret Busse, the department’s executive director, in a prepared statement. ![]()
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