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US v. Rust et al.

On May 8, 2019, A federal grand jury in Salt Lake City returned a six-count indictment charging Gaylen Dean Rust, Denise Gunderson Rust, and Joshua Daniel Rust in connection with an alleged scheme to defraud investors by inducing them to purchase investments in a fraudulent silver trading program.  All three defendants are charged with wire fraud conspiracy in the first count of the indictment and money laundering conspiracy in the second count.  Gaylen Rust is also charged with two counts of securities fraud.  Denise Rust and Joshua Rust are each charged with one count of money laundering.

The indictment alleges that from around 1996 and continuing to Nov. 15, 2018, the defendants conspired to defraud investors and potential investors by offering and inducing them to purchase investments in a silver trading program.  According to the indictment, Gaylen Rust, who offered and sold investments in the program, made false and fraudulent statements regarding his scheme, both directly and indirectly, to investors and potential investors through various means including meetings, phone calls, mailings, and emails.

The indictment alleges the defendants failed to disclose to investors, among other things, that investor funds would be used for purposes other than to invest in silver and trading silver; that Gaylen Rust was not licensed to sell securities, trade commodities or operate a commodity pool; that investor funds were being laundered through transfers in and out of their the defendants’ personal accounts; and that investment account statements provided to investors were false and not based on actual silver trades.  
In order to convince investors that their investments were profitable and to convince potential investors that the silver program was earning money, the defendants operated the trading program as a Ponzi scheme.  The defendants used investment money from later investors to pay the promised returns to earlier investors, creating the false impression that the silver trading program was profitable, the investments were safe and secure, and that the promised returns were being generated.  Ponzi payments of approximately $150 million were made to investors, representing those payments as profits from the operation of the silver trading program.

  • A hearing before Judge Dustin Pead is scheduled on June 25, 2020, 12:00 PM via Zoom for the case which involves Denise Gunderson Rust. The purpose of this hearing is for the defendant(s) to enter a plea of guilty. Your attendance is not required.


  • A trial is scheduled before Judge Ted Stewart on October 19, 2020, 08:30 AM at Rm 8.300,Federal Courthouse, 351 South West Temple, Salt Lake City, UT for the case which involves defendant(s) Gaylen Dean Rust and Joshua Daniel Rust.


NOTICE OF HEARING as to Gaylen Dean Rust, Denise Gunderson Rust, Joshua Daniel Rust (Notice generated by PMW chambers)Initial Appearance/Arraignment reset for 6/13/2019 at 10:00 AM in Rm 8.400 before Magistrate Judge Paul M. Warner.

Rust Indictment

Updated June 23, 2020

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