Gaylen Rust’s Silver Pool investment trading scheme – Alleged Fraud
Gaylen Rust & Rust Rare Coin, Inc. Allegedly Operated a Fraudulent Silver Trading Program, Victimized Hundreds of Investors
Have you or a loved one lost hard-earned cash investing in Gaylen Rust’s Silver Pool investment trading scheme?
Gaylen Rust allegedly operated a Silver Pool investment trading scheme which allegedly promised investment returns of 25 to 40% per annum, and involved over 200 investors, according to a Complaint filed by the SEC against Rust and his company, Rust Rare Coin Inc. under review by attorney Bart Goplerud.
Shindler Anderson Goplerud & Weese, P.C. attorney Bart Goplerud, along with attorney Alan Rosca of the Goldman Scarlato & Penny, P.C. law firm and Salt Lake City attorney Sam Adams of the Adams Davis P.C. law firm, have teamed up to represent investors in the Rust Rare Coin “Silver Pool” trading program. The three law firms have been retained by investors and are preparing to take action and seek compensation for their losses.
Rust allegedly made statement to investors that their money would be used to purchase and store silver bars, and that he had an excellent trading history, the Complaint states.
Several investors allegedly put cash into said Silver Pool investment and subsequently recommended it to their family and friends, and several investors even doubled down and sunk all of their retirement money with Rust, the Complaint reports.
Rather than receiving the expected returns, investors were informed, on November 13, 2018, that the Commodities Futures Trading Commission (CFTC) and the Utah Division of Securities jointly had filed a lawsuit against Gaylen Rust and his Rust Rare Coin, Inc., according to a CFTC Complaint.
The similar SEC lawsuit was filed a few days later, and it is notable that the filing of simultaneous, well-coordinated lawsuits by three different securities regulators is quite uncommon and is a good barometer of the size and serious scope of the case.
Rust Rare Coin Allegedly Engaged in a Massive Scheme to Defraud & Has Been Operating a Scheme That Has Raised over $200 Million
Rust Rare Coin has allegedly been engaged in a massive scheme to defraud and has been running a fraud since 2008, according to the regulators.
Rust Rare Coin has allegedly raised over $200 million from investors just in the last 5 years, and it is now shaping up to be one of the largest schemes in Utah history, the SEC Complaint notes.
Rust Rare Coin allegedly began promoting a so-called Silver Pool in 2008 as a way for people to invest in the silver market, the SEC Complaint reports.
Rust 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
Rust, after having received investor cash, allegedly sent out account statements via email showing fake returns on their investments, the Complaint states.
Rust allegedly purportedly claimed that he had as much as $80 million dollars of silver bars stored at Brink’s depositories in Salt Lake City and Los Angeles, and that the reserves would permit investors to liquidate their investments at any time, the Complaint reports.
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.
Investor Lawyers Preparing to Take Action
Attorney Bart Goplerud, together with his colleagues, 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 its fees and costs out of money recovered for clients.
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 Bart Goplerud for a free no-obligation evaluation of their recovery options, at 515-223-4567, via email at firstname.lastname@example.org.
Start-up Business Basics
Written by James R. Hinchliff
Starting a business? Thinking about starting a business?
Are you going to have employees?
Are you going to have other investors?
How do you pay business taxes?
How do you form an entity?
These are just a few of the questions that every start-up business should answer and prepare accordingly through planning and legal documentation.
Every business needs a plan, and a person or group willing to execute it. One of the most important things that a startup business can do is seek out advice on how to get a business formed, what documentation is needed to do so, what liabilities a new business faces, and what a new business needs to be prepared for. These are all important elements of a successful new business plan.
Every decision made by a business is important, but none may be as important as choice of entity or type of business on the long-term federal income tax attributes the business retains. In 1997, the Internal Revenue service established a “check-the-box” system for choice of entity through Treasury Regulations. The Regulations apply to entities formed under Iowa law, including corporations, general partnerships, limited partnerships, and limited liability companies. For federal income taxation purposes, entities formed under state law are generally treated as C Corporations, S Corporations, Partnerships, or Disregarded Entities.
Corporations formed under Iowa law are taxed under Subchapter C of the Internal Revenue Code or, if the proper election is made, under Subchapter S of the Internal Revenue Code. Partnerships and LLCs formed under Iowa law with more than one partner or member are taxed as partnerships under Subchapter K of the Internal Revenue Code by default, but may be taxed as a corporation if an election is made. Single-member LLCs or other individually owned entities are taxed as sole proprietorships as a default; tax attributes are reported on Schedule C of the owner’s Form 1040. Sole proprietorships, treated as a disregarded entity for federal income tax purposes, may elect corporate taxation status.
So once you pick your entity and register it with the State of Iowa, what do you do after your entity is established?
A few things to think about are:
- Make sure that your corporate documents are drafted correctly and in place before you start doing business.
- Get a separate business bank account before you start doing business to maintain the separation between you and the entity just created.
- Obtain a method of tracking income and expenses.
- Create a means of invoicing for your work.
- Consult with insurance professionals about your business and about any potential exposure you may have.
- Establish a filing system for documents related to the business.
The list goes on.
Accuracy of corporate documents and formalities that you observe while your business is in operation may save you and your business from financial ruin. Maintenance of corporate formalities are essential for any new business. It seems as if having corporate meetings, keeping minutes of the meetings, and maintaining corporate records are a waste of time and effort. It is not.
As a start-up business, there are several aspects of your day-to-day work that you may not be able to control. Clients, shipping, orders, meetings, cancellations, and other variables that complicate every work day. Maintenance of good records, excellent bookkeeping habits, and a rigorous attention to detail are always within your control as a start-up. These habits create better profits and opportunities for success and growth into a mature business.
Make a plan. Execute the plan. Build a successful business.
Buyer’s Paperwork in Real Estate Closings
Written by Fred Anderson
A buyer of real estate is usually entering into one of the largest financial transactions of their lifetimes and one with a mountain of paperwork. Yet, it’s not unusual for a buyer to show up at the closing and sign documents they have not reviewed, not ask any questions that they may have, and not consult an attorney. Although, financial lenders have many similar goals to the buyer, financial lenders are not representing the buyer on legal issues concerning the purchase issues and are actually in a conflict of interest concerning the lending issues. Although, real estate brokers have the same goal as the buyer of closing the transaction, real estate brokers are definitely not representing the buyer concerning legal issues.
Normally there are two closings for the buyer (i) funding for the transaction (with financial lender) and (ii) purchase transaction (with seller). In both transactions, I suggest to try to get all the documents before closing so that a buyer review can be done before hand and does not occur while everyone is sitting and watching. The lender is not infallible and can make mistakes. The lender has its “forms” and it takes a tremendous effort to have them change language unless it is really wrong. However, some of the form language may be wrong for the transaction. A buyer should make sure the documents reflect what the buyer believes the transaction is.
The settlement statements are the keys to the financial side of the funding transaction and the purchase transaction so the figures should be reviewed for accuracy and questioned as to how calculated. On the financing side, the next key documents should be the promissory note and mortgage. The terms of the deal should be correct. On the purchase side, a key document is a title opinion which is needed to find out who owns the real estate in order to accurately transfer it and whether there are any liens or objections that need to be taken care of before the transfer. The warranty deed needs to accurately reflect the name of the seller who owns and is transferring the real estate, the correct legal description of the real estate, and how the buyer wants to take title.
There are several other documents that may be necessary depending on the closing and issues involved. I encourage my clients to review all the documents in order to understand them as much as they can and ask questions of anything they do not understand. They should use counsel if necessary or if they have questions. They should feel comfortable with the process and the documents before they sign. Be ready to successfully scale the mountain of paperwork.
Is the Bar Accountable After an Alcohol-Related Accident?
Written by Brian O. Marty
Iowa law provides that a bar can be held liable if a patron is overserved and then injures someone. These cases, known as “dram shop” cases, most commonly arise in situations involving drunk-driving car wrecks and drunken assaults.
In order to hold a bar liable in a dram shop case, the injured person has to show (1) the bar sold and served alcohol to the person who caused the injury, and (2) the person who caused the injury was intoxicated or became intoxicated by the alcohol served. Like other injury cases, dram shop cases have a two-year statute of limitations. However, Iowa law also requires the injured person to give written notice to the bar of his or her intent to bring a dram shop claim within six months of the injury.
A person’s best source of recovery in an injury case is usually insurance proceeds. Unfortunately, drunk-driving car wrecks and drunken assaults often involve limited or no insurance coverage. For this reason, a dram shop claim against a bar can be an additional source of insurance proceeds to more fully compensate an injured person for his or her damages. The injured person must act quickly, though, in order to ensure that relevant evidence remains available and the six-month notice requirement is met.
Can I still sue for my injuries in a car accident if I wasn’t wearing a seatbelt?
Written by Brandon M. Bohlman
When a person is injured in a motor vehicle accident, it is common that he or she was not wearing a seatbelt. We find that clients are concerned that they do not have a case now. They think that just because they were not wearing a seatbelt, they caused their injuries.
However, that is not the case in Iowa. Iowa Code § 321.445(4)(b)(2) provides that a person injured in a motor vehicle accident can only have their claim reduced by 5%. That means that if you are injured in a motor vehicle accident, and a jury would award you $100,000.00, you can still recover $95,000.00.
While you should always wear a seatbelt, if you didn’t and were hurt in a car accident don’t let that stop you from filing a personal injury claim. Contact us today to schedule a free consultation with a skilled Shindler Anderson personal injury lawyer.
“Why is my Spouse so Crazy?”
Written by Tara L. Hofbauer
Why is he doing this?
She is freaking crazy.
I’m pretty sure he is bipolar.
Accusations that one’s spouse is “crazy” are pervasive in divorce cases—especially on the frontlines of a heated custody battle. It is not difficult to see why. Your once-loving, now estranged spouse is exhibiting behaviors you could not have foreseen in your wildest dreams when you said “I do”, when you held hands on an all-inclusive resort in Cancun on your first anniversary, nor when you celebrated upon finding out you were going to be parents after a long fight with infertility. Divorce is inherently emotional, confrontational, and messy. It often forces us to fly our defensive flag in ways we have never had to. Suddenly, moments you once held sacred with your one-and-only are held under an electron-microscope, studied, scrutinized and used against you in order to prove you are an unfit parent. Preparing new divorce clients for the lizard part of their brains to take over and giving them tools to deal with it are often overlooked, but incredibly important parts of the process.
Clients are caught off guard when I answer the “Why is she so crazy” question with a blunt, “I don’t know-you married her.” This brash reality-check is a just a method to snap a client out of their prehistoric emotional state and into a more business-like, logical one. Has your husband actually been clinically diagnosed as bipolar? The odds are against it. Without an actual diagnosis, and evidence of that mental health issue directly affecting his parenting, no, we will not be using that in your custody case.
Are your actions strategically calculated in order to push her buttons and elicit a certain response? Spouses have inside information into their partners’ deepest emotional flaws. Are you using this inside information in order to bring out the “crazy” in the person with whom you once vowed to spend eternity? On the other hand, are you allowing your lizard brain to take over and your spouse to victoriously rope you into emotional-as opposed to logical-responses over and over? In either case, you are causing the issues in your divorce to multiply and grow like mold spores, compounding one issue on top of the other. Inevitably, you are setting you and your spouse up for a costly war, with civilian casualties, often in the form of your children.
Recognizing the emotional hurdles in a divorce is just one invaluable tool in getting to a successful resolution. Have a support system in place. Be sure you have that friend or family member who can bring you back to reality and not flame the fires of your basest emotions. Call that therapist that your sister recommended. Most importantly, be sure that your legal team provides you with the proper tools and resources. Avoid the casualties of divorce war by arming yourself with methods of dealing with the emotional ups and downs of this very important, life-changing event.
He Liked it so He Put a Ring on It: Property Rights After a Break Up
Written by Sam Charnetski
A tale as old as time. A couple meets, they fall in love, and get engaged. Three years later: no wedding and the rose tint fades. The couple has been together for years, accumulated lots of property and now they are left wondering “what happens next?” Although not as clear cut as a dissolution, couples who cohabitate, engaged or not, have property rights in a break up.
The most frequent question asked is whether or not the engagement ring has to be returned. In 1990, the Iowa Court of Appeals ruled that an engagement ring given in the contemplation of marriage is impliedly a conditional gift. Fierro v. Hoel, 465 N.W.2d 669, 671 (Iowa App. 1990). In other words, yes, if the marriage does not occur, there is not a completed gift and therefore the Donor (person giving the ring) has the right to demand the return of the ring.
The property amassed by couples who cohabitate can be divided through a process called Partition. Partition is an equitable proceeding (meaning the Court has broad power to do what’s fair) that is available for both real and personal property wherein the Court divides the property or the proceeds from the sale of the property.
Break ups can be messy, but with the right advice you can protect yourself and make sure you receive all of the property you are entitled to.
The Case of a Missing Comma
Written by Fred Anderson
When drafting legal documents, it is critically important to use correct punctuation, accurate grammar, and proper phrasing. A good example of this rule is a Maine case about overtime pay that hinged on a missing comma. In O’Connor v. Oakhurst Dairy, US Court of Appeals (1st Circuit May, 13, 2017), delivery drivers sued their employers over whether the drivers qualified for overtime pay. The Court found in the drivers’ favor, holding that the employers must pay overtime because certain clauses of Maine’s overtime laws were grammatically ambiguous due to the absence of a comma.
The serial comma, also known as the Oxford comma, is used just before the coordinating conjunction (“and” or “or,” for example) when three or more terms are listed. You will see a serial comma in the first sentence of this article: it’s the comma after “grammar.” Such a serial comma was missing in the language of the Maine law at issue in the O’Connor case. According to that law, the following types of activities were among those that do not qualify for overtime pay:
The canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment or distribution of:
1) Agricultural produce;
2) Meat and fish products; and
3) Perishable foods.
The case rested on the comma-less space between the words “shipment” and “or.” Is packing (for shipment or distribution) a single activity that is exempt from overtime pay? Or are packaging and distribution two different activities, both of which are exempt?
If lawmakers had used a serial comma, it would have been clear that distribution was an overtime-exempt activity on its own. But without the comma, the court held that the law was ambiguous as to whether distribution is a separate activity or whether the whole last clause—“packing for shipment or distribution”—is one activity, meaning only the people who pack the dairy products are exempt. The drivers did distribute, but did not pack, the perishable food.
Given the amount of information available on the web, it is tempting to cut corners by downloading a legal form from the web. Using a do-it-yourself legal website to maneuver legal needs may save time and money in the moment but there is a very good chance that it will cause problems and will end up far more expensive in long run. The smallest omission can invalidate a document, much like the example from the O’Connor case. Knowing what to look for is crucial to avoid penalties and to ensure the language and applicable laws are up to date and applicable to your state of resident. Hiring a lawyer is key to evade a costly mess.
The lawyers here at Shindler, Anderson, Goplerud & Weese draft a lot of documents. We know how to draft and punctuate your documents. Grammar is not a mystery to us, and we will not misplace your commas.
The Role of Email, Text Messages, and Social Media in Divorce
Written by Katie Gallo
Any of these means of electronic communication can, and frequently are, used as evidence in court during a dissolution of marriage or modification proceeding. When going through a divorce or modification action, expect that your electronic communication and social media will be scrutinized.
Be cognizant of the potential risks to your case before your next Facebook post or text message. Consider the following:
- Always assume your communication will eventually be seen by the Court. Only include information that is necessary and be sure your language and tone are such that you would not be concerned if it were seen by a judge.
- Be calm and collected before sending any communication. Never send a text message, email, Facebook message or post in a moment of anger. Your hostility will be evident and once it’s out there, it can’t be taken back.
- Rough drafts can be useful. Start with a draft of what you would like to communicate to your spouse or ex-spouse. Before you send it, review it closely to be sure it relates only to necessary communication, conveys your message in a concise and straightforward manner, your demeanor is appropriate, and your message cannot be misinterpreted.
In addition, remember that your electronic communications and social media activity can be used in a variety of ways. It can be used as evidence of your state of mind, to undermine your credibility, to demonstrate your character or habits, or to show where you were at a particular date and time – amongst many other uses.
Remember, once you hit post or send, there is no going back – your message is permanently backed up and accessible to the opposition.
Association Restrictive Covenants and This Little Piggy
Written by Fred Anderson
The following is not our firm’s case, but is typical of ones we become involved in.
Lake Forest Property Owners Association v. Regina Gebauer and Taylor (Ala. App Court) The question the Court was asked to answer was whether a pig was livestock or a pet? The Association sued Gebauer claiming a 135 pound Vietnamese potbellied pig violated the neighborhood’s restrictions on livestock and constituted a nuisance or inconvenience to neighbors. The lower court ruled Taylor (the pig) constituted a nuisance and was livestock and should be banned. The appellate court found Taylor didn’t smell, didn’t wander outside the yard and didn’t make noise (except for an oink oink here and an oink oink there). Taylor’s expert (a veterinarian) testified that potbellied pigs do not fit veterinarians definition of livestock animals raised for consumption. The Court found Taylor was not livestock and not a nuisance.
Results of the case:
(1) This is one little pig that didn’t go to market; and
(2) Taylor’s attorney can now claim he truly brought home the bacon.
Association Restrictive Covenants bind the members of the Association. Covenants are necessary for the protection of the members and their property setting up standards and rules for the community. When questions arise, as they often do, about the interpretation or meaning of the Association covenants, courts generally rely on contract law to interpret the Covenants. Litigation, as is illustrated above, often becomes necessary to find out what the meaning is and what to do.
As condo and townhouse developments become more popular, clients and associations are calling attorneys with more questions and issues caused by Covenants. If agreement cannot be reached to resolve the issue, litigation or arbitration is used to get a resolution.
It is always good advice to review the Covenants prior to purchasing a condo or townhouse because there may be restrictions that you cannot live with, i.e. no fence allowed when you need or want a fence in your yard, not allowed to plant certain plants or vegetation, not allowed to conduct a business, or even not allowed to have the pet you want. Our firm invites questions about these and your issues. We know how frustrating it can be when you buy the place of your dreams and you can’t have “this little Piggy.”
Our firm represents both Associations and Members of Associations. Sometimes controversies arise between them concerning the Association Restrictive Covenants. Our firm handles such controversies.