First my Egyptian joke: why did the Egyptian Kings stop building great monuments?
They found out that the whole thing was a big pyramid scheme

https://www.deseret.com/utah/2020/9/8/21427396/fraud-utah-ponzi-scheme-rust-rare-coin-federal-prison

The article indicates that over 700 investors lost over $150 million, but the total lost is believed to be over $200 million. Some $$$ has been / will be recovered. Remember Bernie Madoff? After many years of effort, almost 2/3 of the money was recovered, which is considered a tremendous accomplishment.

History: Gaylen Rust's father ran an honest coin shop which was started in 1966. Gaylen took over, and couldn't resist the temptation to con "friends and family" out of their money in a classic ponzi scheme.

For many, many years, the Rust family convinced people to invest in a "silver trading scheme" where they would profit (average 20% to 25% per year) from strategic leveraged silver investments, taking advantage of the ups and downs of the silver market.

Rust founded Legacy Music Alliance, which sent quite a bit of money to arts programs in Utah schools.

Denise Rust (ex-wife of Gaylen) wasn't the brightest bulb in the string of lights. She didn't catch on to the many mistresses, even signing over $3 million of checks going to one of the mistresses. She claims she didn't know the thing was a big fraud, even though the "statements" were little more than excel spreadsheets created by Gaylen to show the investor "profits".

As late as 2018, more money from unsuspecting victims was sought to cover the withdrawals of previous investors, who thought they were actually making money.

AFFINITY FRAUD
This type of fraud is common in Utah because LDS people (formerly "Mormons") are trusting of fellow active Mormons, even though Utah scams have been going on for many, many decades. AAMOF, the Mormon religion is actually a scam started in 1830.
People with something in common (such as religion), convince fellow members to invest in a great opportunity to make great returns with little risk. Rely heavily on "word-of-mouth" recommendations. The victims come to believe that they are special, because they are invited to make money in the pooled investment program.

HOW TO BE SUCCESSFUL WITH AN SLC AFFINITY FRAUD:
-- appear to be a good active LDS family, with decent kids, and honest LDS relatives
-- donate a bunch of money to local charities, and make sure to brag about the charitable activities
-- "word-of-mouth" popularity amongst the LDS community
-- issue bogus excel spreadsheets instead of legitimate statements- don't worry- the sheep will be too stupid to suspect
-- pay off the earlier investors (with money from later investors), thereby creating "solid credentials".

https://www.considerable.com/money/retirement/3-signs-that-you-cant-trust-your-financial-advisor/

Gaylen Rust . . .
"a smooth talker" who "made people believe what he wanted them to believe"!!!!

gee whiz . . . can anybody think of a person from 1830s and 1840s who was able to do that????

mrx Wrote:
-------------------------------------------------------
> "made people believe what he wanted them to believe"!!!!


Actually, in most fraud cases, the con artist simply validates what the marks already believe, which is usually that there really is a magical path to easy money.

>>Actually, in most fraud cases, the con artist simply validates what the marks already believe, which is usually that there really is a magical path to easy money.


That's my take. Not that anyone ever deserves to be cheated out of their money, but in many cases their investment was based on highly unrealistic expectations for returns. Get too greedy, and you may very well be taken for a ride.

Pyramid schemes are always found out eventually, or they may be able to convince people that the collapse was caused by bad business reversals that they had no control over. Collapse is the operative word.

A pyramid scheme depends on exponential growth to keep going, and exponential growth always always always eventual grinds to a halt. All businesses love exponential growth, but most businesses can survive without it. Pyramid schemes cannot survive without it.

There are crimes we never knew were crimes. Is the loss of some retail merchandise shoplifting or "shrinkage?" (breakage, spoilage, misdirected inventory, etc.) So there may be Ponzi operators who run a racket, wind it down, close up shop and leave the sheep fleeced without attracting legal or criminal attention.

SO yes, Brother of Jerry (not Jared), there may be some who find a way to persuade people to accept their losses, pocket their ill-gotten gains and move on. But the nature of this type of predator is to keep going, going, going until the skin of the Ponzi balloon is stretched so thin it bursts.

Another factor is that some victims will not admit to others (family, ward, authorities) or even themselves that they were taken. They'll swallow their losses along with their pride.

> Another factor is that some victims will not admit
> to others (family, ward, authorities) or even
> themselves that they were taken. They'll swallow
> their losses along with their pride.

And that explains a lot of religion as well as finance.

this is suggesting / saying that they actually prosecute & imprison fraudsters in Utah?

- who knew?

- Is there enough room in Utah (or federal) prisons there?

OMG

(did they pay TITHING on their income, Gross or Net?)



Edited 1 time(s). Last edit at 09/09/2020 01:37AM by GNPE.

For stealing hundreds of millions she got 18 months.

The sad part is hundreds of victims will be sued by the receiver to claw back money they received over the amount they invested.

For example: a person 20 years ago invests $10,000.00 and over the last two decades receives $40,000.00 in payments. The receiver will sue the unwitting investor for $30,000.00 back.

In past fraud cases the church has been sued to recover tithes from ill gotten gains. The church usually fights it.

The name "Rare Rust Coin" reeks of Ponzi scheme. It sounds like a hobby shop or an Ebay store name, not a sophisticated investment firm.

It's Rust Rare Coin after the founder Alvin Rust.

Alvin may sound familiar as he was duped at least twice my mormon forger Mark Hofmann. First he bought counterfeit currency and second he loaned Hofmann money at the request of the church.

As for coins Alvin ran a respectable coin shop. In Utah many coins shops besides having your normal coin supplies and coins also sell large amounts of bullion. So acting as a de facto commodities trader is common.

All it took was for the son Gaylen to use his father's business, clients and good name to line up unsuspecting investors.

Then the grandson takes over and the scheme runs for twenty years.

So these people lacked faith to see the silver with their spiritual eyes?

Why would they send such a righteous man to jail?

Having his children and dear wife torn from his breast?

If even the very jaws of hell open wide after him, he shall be blessed. Yea, even his name shall be both good and evil spoken of.

In the name of the King of all Kings, Redeemer, Savior to the world, even in the name of Jesus Christ Lord Almighty. Amen.

Wasn't Rust mixed up with Mark Hoffman?

Gaylen's father Alvin was associated with Hofmann. Mainly as a victim. Hofmann sold Rust counterfeit notes, some worth thousands.

I forget the exact connection but a loan to Hofmann was also made at the request of a church official.

Hoffman: Remember, ChurchCo lobbied the authorities so that MH wouldn't have to testify with Gordon's name Front & Center;

this should have been prosecuted as a FEDERAL CRIME (explosives used with resulting deaths)...

This will forever stick in my mind as a 'clean up job' = to BY & the MMM.