Utah coin dealer accused of fraud in $170 million Ponzi scheme involving silver

Section:

By Jessica Miller
Salt Lake Tribune
Friday, November 16, 2018

A federal judge has frozen the assets of a Utah rare-coin dealer after state officials accused the business of defrauding hundreds of people in a precious-metals Ponzi scheme.

A civil complaint was filed Thursday by the Securities and Exchange Commission against Gaylen Dean Rust and his company, Rust Rare Coin Inc.

The Utah Department of Commerce said in a news release today that Rust had fraudulently obtained more than $170 million from people in Utah and 16 other states in a scheme involving silver.

... Dispatch continues below ...



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The complaint alleges that for more than 10 years, Rust "tricked" investors who believed they were 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. Investors were told this would lead to "extraordinarily high profits."

But it was a sham, authorities say.

Rust told investors the silver was kept at a depository in Salt Lake City or Los Angeles -- even though the company never purchased or stored anything of that value at those locations. And the investor money was not used to buy silver, either. ...

... For the remainder of the report:

https://www.sltrib.com/news/2018/11/16/utah-rare-coin-dealer/

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