Federal prosecutors have slammed Gaylen Dean Rust, 59, of Layton, Utah, with a six-count indictment tied to a $200 million silver trading fraud that spanned more than two decades. Alongside his wife, Denise Gunderson Rust, 59, also of Layton, and their son Joshua Daniel Rust, 37, of Draper, Gaylen is accused of running a rigged investment scheme that preyed on hundreds of trusting buyers across the U.S. The indictment, returned Wednesday by a Salt Lake City grand jury, alleges the trio operated a massive Ponzi operation under the guise of legitimate silver trading.
The defendants allegedly lured at least 500 investors into pouring money into a so-called silver trading program that never functioned as advertised. Instead of buying and trading silver, the indictment claims investor funds were siphoned off, laundered through personal accounts, and used to pay fake returns to earlier investors. Gaylen Rust, who owned and managed Rust Rare Coin, Inc. (RRC) and a network of affiliated businesses, made false promises about profitability—through calls, emails, and meetings—while hiding key facts: he wasn’t licensed to sell securities or trade commodities, and the program’s account statements were outright fabrications.
Charges include wire fraud conspiracy and money laundering conspiracy for all three defendants. Gaylen Dean Rust faces two additional counts of securities fraud, while Denise Gunderson Rust and Joshua Daniel Rust each face one count of money laundering. From 1996 until at least November 15, 2018, the indictment alleges, the family ran the scheme like a machine, using new investor cash to cover old debts and fabricate success. Approximately $150 million in Ponzi payments were funneled back to investors, falsely labeled as profits.
Denise Rust, listed as secretary of RRC, had signatory authority on multiple company bank accounts. Joshua Rust managed RRC from 2004 until 2018 and oversaw daily operations at the coin shop, also wielding financial control. Investigators say this level of access enabled the laundering and concealment of funds. None of the businesses involved were registered to handle securities or commodities trading, yet they sold investments with promises of steady returns—no risk, all reward.
U.S. Attorney for Utah John W. Huber, FBI Special Agent in Charge Paul Haertel, Francine A. Giani of the Utah Department of Commerce, and Thomas A. Brady of the Division of Securities announced the charges. Each count of wire fraud conspiracy, securities fraud, and money laundering conspiracy carries a maximum penalty of 20 years in federal prison. Money laundering alone could land a defendant 10 years per count. A summons will be issued for each defendant to appear in court.
Despite the sweeping charges, federal officials stress that indictments are not convictions. Gaylen Dean Rust, Denise Gunderson Rust, and Joshua Daniel Rust remain presumed innocent until proven guilty. The case is being prosecuted by Assistant U.S. Attorneys in Salt Lake City. As the court process begins, hundreds of investors await answers about the fate of their life savings.
Related Federal Cases
- Cook Sentenced for Mortgage Fraud Scheme in Utah · Utah
- St. George Tycoon Accused of $10M Real Estate Investment Fraud Scheme · Utah
- Donahoo Pleads Guilty to $2.5M Fraud in Utah Investment Scheme · Utah
- Martin Pool Sentenced for Investment Fraud Scheme in Utah · Utah
- Utah Man Pleads Guilty to Forex Fraud Scheme · Utah
Key Facts
- State: Utah
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News