Gaylen Dean Rust, a Utah Rare-coin Dealer & Rust Rare Coin, Inc. Allegedly Operated a Silver Pool Scheme Which Defrauded Hundreds of Investors
Gaylen Rust and his firm, Rust Rare Coin Inc. allegedly defrauded hundreds of people in Utah and across the country in a precious-metals trading scheme called the Silver Pool, according to a Complaint filed by the SEC against Gaylen Dean Rust and Rust Rare Coin under review by investor rights attorney Alan Rosca and his colleagues, Salt Lake City attorney Sam Adams and Des Moines attorney Bart Goplerud.
Attorneys Alan Rosca, Bart Goplerud, and Sam Adams have been retained by investors and are preparing to initiate legal proceedings to seek compensation for investor losses. They met with numerous Rust Rare Coin investors and are organizing additional investor meetings.
Gaylen Rust, Rust Rare Coin Accused of Fraud by the SEC
Gaylen Rust, a Utah rare-coin dealer, and Rust Rare Coin allegedly operated a fraudulent silver trading program, and has allegedly been soliciting investors to invest in a scheme involving the trading of silver bullion, the aforementioned SEC Complaint states.
Rust has allegedly raised funds from hundreds of investors throughout the country for the silver trading program, the Complaint states. From 2017 through August 2018 alone, Rust may have allegedly raised approximately $85.7 million from investors in the silver trading program, the Complaint states.
Rust has allegedly solicited investors by making material misrepresentations and omissions, the Complaint notes, and the misrepresentations regarding the silver trading program allegedly relate to, among others:
- the amount of silver he maintains in safekeeping for investors at Brink’s Global Services USA Rust’s silver trading methods
- his past performance
- the use of investor funds
- the safety of the investment
In reality, the Complaint states, Rust allegedly:
- does not maintain any amount of silver in storage with Brink’s
- is not employing the sophisticated silver trading strategies he advertises to investors
- is not achieving the returns he is representing to investors
- is putting investor funds at risk by spending them on his personal businesses and on himself and his family members
Rust Allegedly Solicited Investors to Place Their Funds into a “Silver Pool” to Be Used for the Purchase & Sale of Silver Bullion
Rust Rare Coin and Gaylen Rust allegedly solicited investors to place their funds into a purported investment program – the “Silver Pool” – that was based on the purchase and sale of silver bullion, according to the aforementioned SEC Complaint.
Rust has also allegedly told investors that he trades only physical silver, rather than silver futures, the Complaint notes, and that the silver trading program is managed and controlled solely by Rust.
Rust allegedly represented that he used 100% of investor funds to buy silver, and also told investors that he stored all the silver bullion that he has purchased with investor funds at Brink’s Global Services USA in either Salt Lake City or Los Angeles, with 85% of investor silver being stored in Salt Lake City, the Complaint noted.
Rust, in the autumn of 2018, allegedly told investors that he was storing almost $80 million of silver at Brink’s, and furthermore, from January 2017 through August 2018, allegedly raised approximately $85.7 million from investors in the silver trading program, the Complaint stated.
Of the approximately $85.7 million allegedly raised from Rust Rare Coin investors, some $70,243,523 was paid out in checks and wires in payments to earlier investors in the silver trading program, $2,667,700 was withdrawn in cash, $1,162,000 was transferred to Rust’s entity R Legacy, and $9,165,969 was transferred to Rust’s entity R Legacy Entertainment and its R Legacy Investment, the Complaint stated.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.
Rust Rare Coin Investors Working with Investor Right Lawyers Preparing to Take Action
Several investors, including some who are part of larger groups, have met with attorneys Alan Rosca, Bart Goplerud, and Sam Adams in Salt Lake City and are preparing to take action and seek compensation for their losses.
The three lawyers have been retained by investors and are in touch with a considerable number of additional Rust Rare Coin investors. They are preparing litigation proceedings on behalf of investors and are continuing to investigate this matter.
Also, additional investor meetings are planned for the week of January 7, 2018 and later in January.
Securities Lawyers Investigating
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Gaylen Rust and Rust Rare Coin’s alleged silver pool commodities fraud scheme. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Gaylen Rust and Rust Rare Coin’s alleged silver pool commodities fraud scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.