Gaylen Dean Rust Ran Rust Rare Coin, Inc. & Allegedly Orchestrated a $200 Million Silver Pool Scheme with Hundreds of Victims; Investor Right Lawyers Take Action
Gaylen Dean Rust, a Utah rare-coin dealer, and his company, Rust Rare Coin Inc., allegedly defrauded hundreds of investors in a precious metal scheme, according to a complaint filed by the Securities and Exchange Commission against Gaylen Dean Rust and his company, Rust Rare Coin Inc. under review by investor rights attorney Alan Rosca.
Securities lawyer Alan Rosca, of the Rosca Scarlato LLC law firm, and his colleagues have been hired by Rust Rare Coin investors and are preparing to initiate litigation and seek compensation for the investor losses. Attorney Rosca and his colleagues, Bart Goplerud and Sam Adams, have been investigating this matter and have met with investors in Salt Lake City. They are working with investors to schedule additional meetings.
Investors who believe they may have lost money in activity related to Gaylen Rust and Rust Rare Coin’s alleged silver pool commodities fraud scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Rust Rare Coin, Gaylen Rust Sued for Fraud by the Securities and Exchange Commission
The Securities and Exchange Commission’s Complaint alleges that Rust allegedly fraudulently obtained over $170 million from investors in Utah and 16 other states in a scheme involving a silver pool, an investment plan which allegedly brought together investor money for the purpose of entering into contracts of sale for silver, a commodity in interstate commerce.
Rust, for over 10 years, allegedly tricked investors who believed they were purportedly pooling their money so Rust and his company would sell silver held in a pool as market prices rose, and buy silver for the pool when prices fell, the Complaint states. Investors were told this would lead to high profits, the Complaint notes.
Rust allegedly made statements to investors that the silver was kept at a depository in Salt Lake City or Los Angeles despite the company never having purchased or stored anything of that value at those locations, the Complaint reports, nor was investor cash used to purchase silver.
Rust allegedly transferred a small portion of investor contributions to accounts at several precious metals dealers, but allegedly never purchased and stored anything approaching the approximately seventy-seven to eighty million dollars of silver they claimed to be storing at Brink’s depositories in Salt Lake City and/or Los Angeles, the Commodity Futures Trading Commission (CFTC) also alleged.
In reality, the SEC and CFTC noted, said funds were allegedly used to make payments to other investors, transfer money to other companies owned by Rust, and pay personal expenses.
The CFTC further reports that the alleged fraudulent scheme is ongoing, and that in the first eight months of 2018, Gaylen Rust and Rust Rare Coin have received at least $42 million from Silver Pool investors and paid approximately $26 million back to Silver Pool investors, the CFTC states.
Rust, Rust Rare Coin’s Assets Frozen by a Federal Judge
A federal judge in Utah has issued a restraining order freezing Gaylen Rust’s assets and the assets of Rust Rare Coin, Inc., and has ordered a receiver to be appointed and take over the alleged scheme’s assets.
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.
Securities Lawyer Preparing to Take Action
The Rosca Scarlato LLC 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.
Attorney Alan Rosca and his colleagues, Bart Goplerud, with the Shindler Anderson Goplerud & Weese PC law firm, and Sam Adams, with the Adams Davis law firm, have been retained by investors and are preparing to take action. They are in touch with a large number of additional investors and are working to schedule investor meetings in Salt Lake City and elsewhere.
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 arosca@rscounsel.law, or through the contact form on this webpage.
