Tuesday, September 26, 2023
Tuesday, September 26, 2023
Tuesday, September 26, 2023

Utah Man Sentenced to 19 Years in Prison for $225 Million Ponzi Scheme Targeting Mormon Church Members




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A Utah resident known for his smooth talking and passion for racehorses has been handed a 19-year prison sentence for orchestrating a Ponzi scheme that defrauded members of the Mormon church out of $225 million, Your Content has learned.

Gaylen Dean Rust, 62, was convicted of money laundering and securities fraud in what has been described as one of Utah’s largest-ever Ponzi schemes. Rust, the mastermind behind the fraud, used his company, Rust Rare Coins, as a vehicle to deceive family members, friends, and individuals he met through the Mormon Church.

Assisted by his wife Denise, who claimed to be unaware of her husband’s deceitful activities, and at least one of his adult children, Rust successfully convinced 568 people to invest in his fraudulent program between 2002 and 2018. Promising substantial annual profits ranging from 25 to 125 percent, Rust exploited the trust placed in him by the victims.

Instead of delivering on his promises, Rust diverted the funds to finance his other ventures, including racehorses, music charities, and a lavish $2 million residence. He even misappropriated $18 million for personal use, while reportedly coercing his wife to transfer at least $3 million to a mistress.

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In addition to the prison sentence, Rust has been ordered to pay restitution totaling $153 million to compensate his victims for their financial losses. The severity of the punishment reflects the magnitude of the crimes committed by Rust, who masqueraded as a racehorse-owning philanthropist dedicated to supporting arts programs, according to The daily Mail.

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