Gaylen Rust’s Silver Pool investment trading scheme – Alleged Fraud
January 4, 2019
Tags: class action
Filed in: Litigation
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 goplerud@sagwlaw.com.
