SALT LAKE CITY — The Utah man who prosecutors and investors have accused of running a $200 million silver trading scheme to fund charitable causes and lure more victims, pleaded guilty in federal court Monday.
Gaylen D. Rust, 62, pleaded guilty to wire fraud, securities fraud and money laundering conspiracy. The plea agreement calls for prosecutors to recommend 19 years in prison.
Another count of securities fraud was dismissed as part of the agreement with prosecutors. Rust answered routine questions from U.S. Magistrate Judge Cecilia Romero. He was represented by public defenders.
Rust and his family operated Rust Rare Coin. According to civil and criminal court documents, beginning in at least 2008, Rust induced investors to put money toward silver trading.
“Their money was going to be used by buy physical silver that was going to be stored at the warehouse,” explained Alan Rosca, an attorney representing some of Rust’s investors.
“And it turned out that none of that was true,” Rosca said. “He was a fraud. It was all smoke and mirrors.”
Court records have placed the money Rust and his family solicited at $200 million. Some of the proceeds were diverted to a $2 million home in Layton, and other businesses, including racehorses, according to court records.
The Rust family also sent money to music charities in Utah.
Rust’s now ex-wife, Denise Gunderson Rust, 62, is already serving 18 months after pleading guilty to wire fraud, though she appears to be have been…
