#GAYLEN RUST UPDATE CODE#

People offering money advice should have at least one credential that signifies a rigorous financial education and adherence to a code of ethics, such as certified financial planner (CFP) or chartered financial analyst (CFA).Ĭivil lawsuits filed late last year by the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Utah Division of Securities say Rust, his wife and son persuaded hundreds of friends, customers and business associates across the country to invest in his bogus silver trading pool. LOOK FOR, AND VERIFY, THE RIGHT CREDENTIALS. Sometimes minor complaints end up in the databases, but typically the misconduct reported is serious. Financial advisers should be registered either as a broker/dealer or as an investment adviser. MAKE SURE THE ADVISER IS PROPERLY REGISTERED. What you should do to avoid being scammed: He didn’t use a third party, such as a brokerage firm, to issue account statements and instead provided investors with spreadsheets showing purported transactions.

He claimed consistently high returns, saying he averaged 20 percent to 25 percent annually and never less than 12 percent. He wasn’t registered in the securities industry. The people who invested with Rust ignored several big red flags. ‘Unfortunately, the reality of these cases is that victims’ money is nearly always spent by the perpetrator of the crime or paid out to other victims.’ ‘Those who defraud their family, friends, and associates out of their hard-earned savings will be held accountable,’ said US acting attorney for the district of Utah Andrea Martinez. Judge Ted Stewart said the case was ‘one of Utah’s largest Ponzi schemes,’ adding that many of Rust’s victims have been left with no life savings and unable to retire. ‘I wish longer, but I also realize that him spending time in jail doesn’t get anybody their money back,’ Abplanalp told Fox. Rust used money from new victims to pay older investors but had almost no silver stored at Brinks Global Services, where he claimed RRC had $80 million worth of the material.īryce Abplanalp, 35, and his father lost $150,000 after investing in Rust’s Ponzi scheme.

The money will go to Rust’s victims at The Church of Jesus Christ of Latter-day Saints and donations to Utah State University.įrom 2002 to 2018, Rust convinced at least 568 people to invest in RRC’s fraudulent silver trading program, telling them 100 percent of their investments would be used to buy silver bullion and they would receive 25-to-25 percent profit every year.

He also withdrew $18 million into three personal accounts at Zion’s Bank and was accused by Denise’s lawyer of making her sign over checks totaling $3 million over a five-year period for his mistress.Īfter Rust’s assets were ordered to be liquidated, 67 of his racehorses (pictured) sold for $334,750 at an auction. The money will go to Rust’s victims at The Church of Jesus Christ of Latter-day Saints and donations to Utah State UniversityĪfter Rust’s assets were ordered to be liquidated, 67 of his horses sold for $334,750 at an auction, each averaging $4,996 in price, according to trade publication Thoroughbred Daily News. Rust spent the money on his other businesses, racehorses, local music charities and a lavish $2 million home in Layton, Utah. Rust’s son Joshua Rust, 39, also pleaded guilty to one count of misprision of a felony in relation to the scheme.Īmong Rust’s victims were family members, friends’ children and people he met at the Church of Jesus Christ Latter-day Saints, local news station KSL reported. She pleaded guilty to wire fraud last year and has already served 18 months in jail. He was helped by his estranged wife Denise, who testified that she was an ‘unwitting pawn’ in Gaylen’s world,’ and at least one of his five adult children, authorities said.

Gaylen Dean Rust, 62, of Layton, was convicted of wire fraud, money laundering, and securities fraud for using his company, Rust Rare Coins, to trick victims into investing in a bogus investment scheme, according to court records. Prosecutors said it was one of the biggest Ponzi schemes in state history. A ‘smooth talking’ Utah fraudster who conned members of the Mormon church out of $225 million ina bogus silver bullion trading scheme with the help of his ‘unwitting pawn’ ex-wife was sentenced Tuesday to 19 years in prison and ordered to pay his victims $153 million.

Gaylen rust update