A Utah man pleaded guilty Monday to federal charges of wire fraud, securities fraud and money laundering conspiracy.
Gaylen D. Rust, 62, was accused of soliciting investors to fund a silver trading scheme through his family’s antique coin business, Rust Rare Coin, FOX 13 reported.
Court records allege that some of the estimated $200 million in proceeds went toward a $2 million Layton home, racehorses and music charities. Rust’s plea agreement recommends a 19-year prison sentence.
Rust’s ex-wife, Denise Gunderson Rust, is already serving 18 months after pleading guilty to wire fraud. Denise and Gaylen’s son, Joshua D. Rust, will be tried in April on counts of money laundering and conspiracy to commit fraud.
A receiver is currently liquidating the Rusts’ assets and pursuing money previously donated to Utah State University and tithed to The Church of Jesus Christ of Latter-day Saints. An ongoing lawsuit against a bank also alleges that the bank did not do enough to detect and stop the fraud.
Rust in his plea agreement consented to pay $153 million in restitution to more than 500 victims, but it’s unlikely he will be able to pay. A sentencing in the case is slated for March 8.
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