Washington, D.C. – The Commodity Futures Trading Commission (CFTC) and the Utah Department of Commerce have filed amended charges against Denise Gunderson Rust and Joshua Daniel Rust, alleging their active participation in a $200 million precious metals Ponzi scheme orchestrated by Gaylen Dean Rust and Rust Rare Coin, Inc. (RRC). The scheme, known as the “Silver Pool,” fraudulently solicited funds from investors starting in May 2013, promising to pool money for silver purchases.
According to the complaint filed December 6, 2018, Denise Rust and Joshua Rust knowingly assisted in the fraudulent operation. They allegedly signed checks issued to investors, recognizing these were Ponzi payments derived from other investors’ contributions. Further, the pair is accused of transferring investor funds from accounts controlled by Gaylen Rust and RRC to relief defendants or to support other RRC business ventures.
Investigators now believe the scope of the Silver Pool fraud exceeds previous estimates, impacting over 430 individuals and involving at least $200 million in investor funds. The initial civil enforcement action was filed November 13, 2018, in the U.S. District Court for the District of Utah, Central Division. Denise and Joshua Rust were initially named as relief defendants, accused of receiving improperly obtained funds.
A restraining order was issued November 15, 2018, freezing the assets of the defendants and relief defendants, and allowing the CFTC and the State of Utah to examine relevant records. Jonathan Hafen of Parr Brown Gee & Loveless was appointed as receiver to manage the seized assets and establish a claims process for defrauded investors. Investors can submit claim information through the receiver’s website: https://rustrarecoinreceiver.com/.
The CFTC and the State of Utah are seeking disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act and Utah securities laws. The CFTC acknowledged the cooperation of the Utah Department of Commerce, the Utah Attorney General’s Office, the FBI, the U.S. Attorney’s Office for the District of Utah, and the SEC’s Salt Lake City Regional Office.
Source: CFTC.gov
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