Rust Rare Coin Receivership Information Page

On November 15, 2018, the United States District Court for the District of Utah appointed Jonathan Hafen of the law firm Parr Brown Gee & Loveless as receiver for the assets of Gaylen Dean Rust, Rust Rare Coin, Inc., Denise Gunderson Rust, Joshua Daniel Rust, Aleesha Rust Franklin, R Legacy Racing Inc., R Legacy Entertainment LLC, R Legacy Investments LLC, and their affiliates. Pursuant to the Appointment Order, the Receiver is in the process of liquidating and recovering assets.

Additionally, on August 30, 2019, the Receiver sent out over 4,000 claim forms to possible claimants. The deadline to submit all claim forms to the Receiver was October 4, 2019. At this time, the Receiver has begun analysis of the claims.

Please know that the Receiver and his team are working as quickly as possible to gather, preserve, and ascertain the distribution of assets of the Receivership Estate. The Receiver has received hundreds of claims from various stakeholders and is working on analyzing each individually. Please use the form below to provide questions and concerns regarding the claims process. We appreciate your patience as we work to respond to each inquiry.

Receivership Update Regarding Distributions

Dated: January 17, 2024

The Receiver is pleased to announce that he recently made three initial distributions to claimants in connection with this matter:

  • On December 27, 2023, the Receiver paid in full all Class 1 and Class 3 claims filed against the Receivership Estate. The payments made to those claimants for administrative costs of the Rust Rare Coin estate and for secured liens totaled $361,433.48.
  • On January 5, 2024, the Receiver made an initial distribution from the Receivership Estate to Class 4 claimants, which are unsecured creditors and defrauded investors, in the total amount of $21,563,942.14. This distribution, along with payments from the Zions Class Action Settlement described below, brought Class 4 claimants to 25% recovery under the court-approved rising tide methodology.
  • On January 5, 2024, the Receiver, acting as the Settlement Distribution Administrator, distributed $1,348,146.26 in funds from the class action settlement obtained by class counsel in Gregory, et al., v. Zions Bank Bancorporation, N.A., Case No. 2:19-cv-00015-HCN-DBP. The Receiver reserved a small amount of the Settlement Funds to cover two claims that have not yet been resolved.  If those claims are ultimately denied, the Receiver will distribute those additional funds to class members at a later date.

The Receiver anticipates making additional distributions in the future from the receivership case, but at this time, he does not know when the distribution will be made or how much more will be distributed.  That will be determined in the coming months as pending litigation and remaining disputed claims are resolved.

The method used by the Receiver to determine the amount to distribute to an individual claimant is called the “rising tide” methodology.  As several questions have arisen regarding this methodology, the Receiver uses the following hypothetical to explain how creditor claims are calculated under that methodology:


Creditor Contributions

Creditor Distributions

Allowed Claim

Percent Recovery

Payout at 25% Distribution

Revised Percent Recovery

A $100,000.00 $0.00 $100,000.00 0.00% $25,000.00 25.00%
B $110,000.00 $10,000.00 $100,000.00 9.09% $17,500.00 25.00%
C $200,000.00 $100,000.00 $100,000.00 50.00% $0.00 50.00%


Under this hypothetical, each of the three claimants has the same allowed claim amount of $100,000.  Creditor A, however, did not receive any payments from Rust Rare Coin before the appointment of the receiver, representing a 0% recovery of the amount invested, while Creditor B received $10,000 and Creditor C received $100,000 in payments from Rust Rare Coin representing a 9.09% and 50% recovery respectively of the amounts invested.  Under a payout that results in each creditor receiving a 25% recovery of the amount invested, Creditor A would receive $25,000 ($100,000 x 25%) and Creditor B would receive $17,500 ($110,000 x 25% – $10,000).  Because Creditor C has already received payments of more than 25% of the amount invested, Creditor C would not receive a payment from this payout.  Creditor C will not receive a payment until Creditor A and Creditor B receive payouts equal to 50% of the amounts they invested. As you will see from this example, the rising tide methodology attempts to treat each creditor as equally as possible and not penalize those creditors who did not withdraw money from Rust Rare Coin before the Receiver’s appointment.

If you have any questions regarding these distributions, please email

WARNING: SCAMMING TELPHONE CALLS TO CLAIMANTS. If you receive a telephone call from someone claiming to be from the Receiver’s office who is calling to help you recover your distribution, and if that person asks for personal information (home address, social security number, bank account information, credit card information, etc.), please know that this call is NOT coming from the Receiver’s office and DO NOT provide any personal information over the telephone. The Receiver will communicate with you by posting items to the Receiver’s website ( or by sending it to you by mail or email to the addresses you listed in your claim form. The Receiver’s office will never call you as a claimant and ask for personal information. If you have any questions about this, please call the Receiver’s office at (801) 520-5410, and ask to speak with Lori Stumpf. Thank you.




The following two documents are not intended to provide tax advice to investors. However, they discuss the prescribed treatment for investors if it is determined that the Rust Rare Coin, Inc. et. al. operation was a Ponzi scheme.

Rust Rare Coin – Theft Loss Memo for Investors

Rev. Proc. 2009-20


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