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 |
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 rustclaims@parrbrown.com.
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 (rustrarecoinreceiver.com) 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.
UPCOMING HEARINGS:
TAX INFORMATION FOR INVESTORS:
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
NEWS:
- Receiver’s Twenty-Fourth Quarterly Status Report 10.31.2024
- Twenty-Third Interim Fee Application 09.11.2024
- Receiver’s Twenty-Third Quarterly Status Report 07.31.2024
- Receiver’s Twenty-Second Interim Fee Application 06.12.2024
- Consent to Zions Motion to Transfer Claim CL0578 of the Leland S. Jacobson Trust to Zions Bancorporation, N.A. 05.22.2024
- Twenty-Second Quarterly Status Report 04.30.2024
- Order Granting Twenty-First Interim Fee Application 03.15.2024
- Twenty-First Interim Fee Application 03.14.2024
- Rust Rare Coin Twenty-First Quarterly Status Report 01.31.2024
- Twentieth Interim Fee Application 12.13.2023
- Motion to Approve Receiver’s Settlement with Bary G. Jones, et al. 12.11.2023
- Order Granting Motion to Approve Receiver’s Settlement Agreement with Tyler Thurgood 11.14.2023
- Motion to Approve Receiver’s Settlement Agreement with Tyler Thurgood 11.13.2023
- Receiver’s Twentieth Quarterly Status Report 10.31.2023
- Submission Lodging Additional Evidence From Be Part of the Music Regarding Objections to Receiver’s Claims Registry 10.18.2023
- Submission Lodging Nonparty Objections to Receiver’s Claims Registry-Exhibits 6 thru 12 10.05.2023
- Submission Lodging Nonparty Objections to Receiver’s Claims Registry with Exhibits 1 thru 5 10.05.2023
- Receiver’s Nineteenth Interim Fee Application 9.19.2023
- Receivers’ Nineteenth Quarterly Status Report 7.31.2023
- Order Granting Eighteenth Interim Fee Application 6.13.2023
- Receiver’s Eighteenth Interim Fee Application 6.12.2023
- Rust Rare Coin Eighteenth Quarterly Status Report 4.28.2023
- Notice of Filing Claims Registry Instructions, Claims Bar Date, and Claims Registry 3.27.2023
- Order Granting Seventeenth Interim Fee Application 3.15.2023
- Receiver’s Seventeenth Interim Fee Application 3.14.2023
- Receiver’s Seventeenth Quarterly Report 1.31.2023
- Court Order Granting Sixteenth Interim Fee Application 12.15.2022
- Receiver’s Sixteenth Interim Fee Application 12.14.2022
- Signed Order Granting Receiver’s Motion to Approve Settlement 11.17.2022
- Motion to Approve Receiver’s Settlement Agreement with Lynn and Darlene Goodsell 11.17.2022
- Receiver’s Sixteenth Quarterly Report 10.31.2022
- Order Granting Motion to Approve Receiver’s Settlement Agreement with Kara Brimley 9.22.2022
- Agreement with Kara Brimley 9.22.2022
- Order Approving Fifteenth Interim Fee Application – 9.13.2022
- Receiver’s Fifteenth Interim Fee Application – 9.12.2022
- Modification of Docket – 8.18.2022
- Court Order Granting Motion for Leave to File Sealed Document – 8.18.2022
- Motion to Approve Receiver’s Settlement Agreement with Kara Brimley – 08/09/2022
- Order Granting Motion to Withdraw as Counsel (Robert K. Hunt & Kristen R. Angelos) – 08/02/2022
- Receiver’s Fifteenth Quarterly Status Report – 08/01/2022
- Order Denying Ponzi Determination – 07/21/2022
- Minute Entry – Motion for Ponzi Determination – 07/14/2022
- Reply in Support of Receiver’s Motion for Ponzi Determination to Establish and Objection Procedure – 07/08/2022
- Signed Order Grant Approval for Receiver to Assist in Distribution of Class Action Settlement – 06/24/2022
- Signed Order Grant Motion of Zions Bancorporation, N.A. for Termination of Intervention with Consent – 06/23/2022
- Signed Order Grant 14th Interim Fee Application
- Motion Seeking Approval for Receiver to Assist in Distribution of Class Action Settlement
- 2022.06.15-Dkt-461-Receiver’s Fourteenth Interim Fee Application – 5
- Signed Order Grant Approval of Claims Obj Resolution Procedures & Claims Bar Date – 2022/05/31
- Notice of Hearing on Motion for Ponzi Determination – 5/26/2022
- Notice of Lodging of 3rd-Party Submissions re Motion for Ponzi Determination – 5/24/2022
- Exhibit A – Part 1 to Notice of Lodging of 3rd-Party Submissions re Motion for Ponzi Determination – 5/24/2022
- Exhibit A – Part 2 to Notice of Lodging of 3rd-Party Submissions re Motion for Ponzi Determination – 5/24/2022
- Exhibits B – H to Notice of Lodging of 3rd-Party Submissions re Motion for Ponzi Determination – 5/24/2022
- Signed Order Granting Motion for Additional Time – 5/4/2022
- Motion for Additional Time – 5/3/2022
- Receiver’s Fourteenth Quarterly Report – 4/29/2022
- Motion Seeking Approval of Claims Obj Resolution Procedures and Claims Bar Date – 4/25/2022
- Exhibits to Motion Seeking Approval of Claims Obj Resolution Procedures and Claims Bar Date – 4/25/2022
- Motion to Approve Receiver’s Settlement Agreement with Lynn & Darlene Goodsell – 4/18/2022
- Signed Order Establishing Ponzi Objection Procedure – 3/30/2022
- Motion for Ponzi Determination & to Establish an Objection Procedure – 3/15/2022
- Exhibit A to Motion for Ponzi Determination – 3/15/2022
- Exhibit B to Motion for Ponzi Determination – 3/15/2022
- Exhibit C-1 to Motion for Ponzi Determination – 3/15/2022
- Exhibit C-2 to Motion for Ponzi Determination – 3/15/2022
- Withdrawal of Motion to Enforce Settlement Agreement – 3/3/2022
- Receiver’s Reply in Support of Motion to Enforce Settlement Agreement – 3/2/2022
- Submission Lodging Nonparty Response to Receiver’s Motion to Enforce Settlement Agreement – 3/2/2022
- Thirteenth Fee Application – 2/22/2022
- Motion to Enforce Settlement Agreement – 2/8/2022
- Receiver’s Thirteenth Quarterly Status Report – 1/31/2021
- Twelfth Interim Fee Application – 12/13/2021
- Motion to Approve Settlement Agreement with the Evans Parties – 12/6/2021
- Receiver’s Twelfth Quarterly Status Report – 10/29/2021
- Signed Order Approving Settlement with Utah State University – 10/15/2021
- Conflict Receiver’s Motion to Approve Settlement with Utah State University & Status Report – 10/14/2021
- Eleventh Interim Fee Application – 10/5/2021
- Signed Order Granting Rule 60 Motion to Correct Order – 9/24/2021
- Rule 60 Motion to Correct Order – 9/24/2021
- Signed Order Granting Motion for Hr’g to Confirm Private Sale of West Gordon Avenue Property in Layton, Utah – 9/8/2021
- Receiver’s Eleventh Quarterly Status Report – 7/30/2021
- Stipulated Motion to Dismiss Oberhansly Lawsuit with Prejudice – 7/13/2021
- Motion for Hr’g to Confirm Private Sale of Property Related to 2815 W. Gordon Avenue in Layton, Utah – 7/9/2021
- Tenth Interim Fee Application – 7/6/2021
- Ninth Interim Fee Application – 5/27/2021
- Receiver’s Tenth Quarterly Status Report – 4/29/2021
- Motion to Approve Settlement Agreement with Lucile Rust Johnson – 4/22/2021
- Signed Order & Memorandum Decision – 4/13/2021
- Signed Order Appointing Appraisers for Layton Property – 4/5/2021
- Motion to Confirm Appointment of Appraisers for Layton Property – 3/24/2021
- Order Approving Settlement Agreement with Denise Gunderson Rust – 1/29/2021
- Receiver’s Ninth Quarterly Status Report – 1/29/2021
- Memorandum Decision and Order Granting Receiver’s Motion for Partial Summary Judgment – 1/22/2021
- Motion to Approve Settlement Agreement with Denise Rust – 1/19/2021
- Order Granting Eighth Interim Fee Application – 1/19/2021
- Eighth Interim Fee Application – 1/15/2021
- Signed Order Granting Motion to Approve Settlement Agreement with Corporation of the President of The Church of Jesus Christ of Latter-Day Saints – 1/12/2021
- Signed Order Sustaining Receiver’s Objections to Certain Categories of Claims – 1/7/2021
- Signed Order Grant Permission to Return Items to Consignors – 1/7/2021
- Motion to Approve Settlement Agreement with Corporation of the President of The Church of Jesus Christ of Latter-Day Saints – 12/31/2020
- Order Granting Motion to Approve Settlement Agreement with Enloe Parties – 12/3/2020
- Motion to Approve Settlement Agreement with Enloe Parties – 11/22/2020
- Signed Order Granting 7th Interim Fee Application – 11/16/2020
- 7th Interim Fee Application – 11/13/2020
- Order Establishing Obj. Procedure re Receiver’s Objections to Certain Categories of Claims – 11/10/2020
- Motion to Sustain Receiver’s Objs to Certain Categories of Claims & to Approve Obj Procedure – 11/2/2020
- Order Establishing Objection Procedure – 11/02/2020
- Motion to Return Consigned Items – 10/30/2020
- Order Granting Stipulation and Continued Hearing – 10/30/2020
- Receiver’s Eighth Quarterly Status Report – 10/30/2020
- Stipulation re Request for Clarification of Asset Freeze Order and Request to Continue Hearing (Dkt. Nos. 345, 350 & 352) – 10/29/2020
- Signed Order Granting Motion to Approve Settlement with CC Soundhouse, LLC, Caleb Chapman, Andrew Surmani & Rick Drumm – 10/27/2020
- Request for Status Conference re Clarification of Asset Freeze Order – 10/19/2020
- Signed Order Granting Motion to Approve Settlement Agreement with K. McCoy Livingston & Related Entities – 10/19/2020
- Motion to Approve Settlement Agreement with CC Soundhouse, LLC, et. al. – 10/14/2020
- Motion to Approve Settlement Agreement with K. McCoy Livinsgston et. al – 10/5/2020
- Signed Order Granting Motion for Hr’g to Confirm Private Sale of Diamond Ridge Road Property – 9/3/2020
- Order and Memorandum Decision Overruling all Objections to Proposed Distribution Plan – 8/20/2020
- Notice of Hearing on Motion to Confirm Sale & Status Conference – 8/7/2020
- Sixth Interim Fee Application – 8/7/2020
- Motion for Hearing to Confirm Private Sale of Diamond Ridge Road Property in Homer, Alaska – 8/7/2020
- Receiver’s Seventh Quarterly Status Report– 7/30/2020
- Notice of Hearing on Motion re Distribution 3 of 3 – 7/27/2020
- Notice of Hearing on Motion re Distribution 2 of 3 – 7/27/2020
- Notice of Hearing on Motion re Distribution 1 of 3 – 7/27/2020
- Reply re Motion to Approve Distribution Plan FINAL – 7/21/2020
- Submission Lodging Nonparty Objections to Receiver’s Proposed Distribution Plan, Objection Procedure, and Claim Analysis – 7/7/2020
- Order Granting Motion for Order of Sale – 5/22/2020
- Motion for Order of Sale of Musician’s Toolkit – 5/22/2020
- Order Establishing Objection Procedure to Proposed Distribution Plan – 5/1/2020
- Receiver’s Sixth Quarterly Status Report – 4/30/2020
- Motion to Approve Distribution Plan, Objection Procedure, and Claim Analysis – 4/24/2020
- Order Granting Receiver’s Motion for Permission to Liquidate & Abandon Inventory of Rust Rare Coin, Inc. – 3/12/2020
- Order Granting Fifth Interim Fee Application – 3/10/2020
- Fifth Interim Fee Application – 3/10/2020
- Order Grant Motion for Hearing to Confirm Private Sale of Main Street Property in Homer, Alaska – 2/25/2020
- Notice of Errata re Receiver’s Fifth Quarterly Status Report – 2/3/2020
- Receiver’s Fifth Quarterly Status Report – 1/30/2020
- Motion for Hearing to Confirm Private Sale of Main Street Property in Homer, Alaska – 1/23/2020
- Receiver’s Reply to Objections re the Sale of Rust Rare Coin Inc. Inventory and Request for Hearing – 1/17/2020
- Notice of Claim Form and Claim Procedure Publication – 1/16/2020
- Order Granting Motion to Confirm Private Sale of Huge Studios – 1/15/2020
- Order Granting Fourth Interim Fee Application – 1/02/2020
- Fourth Interim Fee Application – 12/31/2019
- Motion for Hearing to Confirm Private Sale of Huge Studios – 12/31/2019
- Order Granting Motion for Settlement Authority – 12/11/2019
- Order Granting Motion to Approve Settlement Agreement with Shawn Olsen – 12/11/2019
- Motion for Settlement Authority – 11/25/2019
- Motion to Approve Settlement Agreement with Shawn Olsen – 11/22/2019
- Order Granting Motion to Approve the Sale of Master Recordings to Jeannine Goeckeritz – 11/21/2019
- Order Granting Motion for Hearing to Confirm Private Sale of Victorian Property – 11/14/2019
- Motion to Approve the Sale of Master Recordings to Jeannine Goeckeritz – 11/06/2019
- Receiver’s Fourth Quarterly Status Report – 10/31/2019
- Motion for Hearing to Confirm Private Sale of Victorian Property – 10/23/2019
- Order Granting Receiver’s Motion for Reappointment and Expedited Consideration – 10/09/2019
- Order Granting Third Interim Fee Application – 9/26/2019
- Notice to Submit for Decision – 9/20/2019
- Motion to Approve Third Interim Fee Application – 9/4/2019
- Commodity Futures Trading Commission, et al., v Rust Rare Coin Inc., et al. Claims Packet 8/30/2019
- Order Granting Motion Seeking Approval of Proposed Claim Procedures, Claim Deadline, and Claim Forms – 8/19/2019
- Update Regarding Contact Information and Claims Packet – 8/15/2019
- Motion Seeking Approval of the Proposed Claim Procedures, Claim Deadline, and Claim Forms – 8/02/2019
- Receiver’s Third Quarterly Status Report For the period April 1, 2019 to June 30, 2019 – 7/30/2019
- Receivership Update – 7/23/2019
- Motion for Turnover of $1.6 Million Interpled into the Court by Zions Bank – 7/16/2019
- Order Granting Motion to Confirm Private Sale of Big Door Property – 7/15/2019
- Order Granting Motion to Approve Sale of the Writer’s Den, LLC – 7/5/2019
- Motion for Hearing to Confirm Private Sale of Big Door Property – 7/1/2019
- Order Granting Motion to Approve Settlement Agreement with Aleesha Rust Franklin – 7/1/2019
- Order Granting Motion to Approve the Sale of Master Recordings to Sarah Clanton – 6/19/2019
- Order approving Private Sale of Sea Breeze Property – 6/19/2019
- Order Appointing Appraisers for Victorian Home – 6/19/2019
- Motion to Approve Sale of The Writer’s Den, LLC – 6/19/2019
- Motion to Approve Settlement Agreement with Aleesha Rust Franklin – 6/14/2019
- Order Granting Second Interim Fee Application – 6/10/2019
- Order Approving Private Sale of Leasehold Interest – 6/5/2019
- Order Granting Motion to Confirm Private Sale of St. George Condo – 6/5/2019
- Notice of Hearing on Motion – 6/5/2019
- Order Approving Private Sale of Receivership Property – 6/5/2019
- Motion for Hearing to Approve Private Sale of Receivership Property – 6/4/2019
- Motion to Confirm Appointment of Appraisers for Victorian Home – 6/3/2019
- Motion to Approve the Sale of Master Recordings to Sarah Clanton – 5/28/2019
- Second Interim Fee Application – 5/24/2019
- Second Corrected Notice of Hearing on Motions – 5/22/2019
- Motion for Expedited Hearing to Approve Private Sale of Receivership Property – 5/21/2019
- Corrected Notice of Hearing on Motion to Approve Private Sale of Receivership Property and Motion to Confirm Private Sale of St. George – 5/21/2019
- Motion to Approve Settlement Agreement – 5/16/2019
- Notice of Hearing to Approve Private Sale of Receivership Property – 5/15/2019
- Motion for Hearing to Approve Private Sale of Receivership Property – 5/14/2019
- Motion for Permission to Liquidate – 5/8/2019
- Grand Jury Returns Indictment – 5/8/2019
- Motion to Approve Transfer of Funds to Jeff and Patricia Watson – 5/1/2019
- Receiver’s Second Quarterly Status Report – 4/30/2019
- Response to Zion Bank’s Receivership Interpleader Motion – 4/16/2019
- Motion to Allow Summary Disposition Procedure – 4/16/2019
- Signed Order Denying Motion to Modify Order Freezing Assets – 4/4/2019
- Signed Order Staying Civil Case Pending Outcome of Criminal Proceedings – 3/20/2019
- Signed Order Appointing Appraisers & Approving Engagement of Consultant for Sale of Huge Studios – 3/20/2019
- Reply to Pl’s Resp & MIO to Denise Rust’s Motion to Modify Order Freezing Assets – 3/18/2019
- Receivership Interpleader Motion – 3/13/2019
- Signed Order Granting Motion to Intervene – 3/12/2019
- Signed Order Appointing Appraisers – 3/8/2019
- Redacted First Interim Fee Application – 3/8/2019
- Notice of Consent to Entry of Pls’ Proposed Order to Stay Civil Case Pending Outcome of Criminal Proceedings – 3/8/2019
- Signed Order Sealing Documents – 3/5/2019
- Signed Order for Extension of Time to File Reply – 3/4/2019
- Signed Order for Extension of Time to File Reply – 3/1/2019
- Stipulated Motion for Extension of Time to File Reply – 3/1/2019
- Motion to Approve Use of Broker’s Price Opinions, Comparative Market Analysis, Restricted Appraisal Reports – 3/1/2019
- Motion to Confirm Appointment of Appraisers & Approve Engagement of Consultant for Sale of Huge Studios – 2/26/2019
- Sharyn Heiner’s Motion to Intervene – 2/13/2019
- Joshua Rust’s RIS of Motion to Stay – 2/12/2019
- Reply MIS of Motion to Stay Civil Cases Pending Outcome of Criminal Proceedings – 2/12/2019
- Zions Bankcorporation’s Motion to Intervene – 2/12/2019
- Motion to Modify Order Freezing Assets – 2/11/2019
- Motion to Appt. Appraisers 1121 Seabreeze Court, Homer, AK – 2/11/2019
- Motion to Appt. Appraisers 65299 Diamond Ridge Road – 2/11/2019
- Motion to Appt. Appraisers 3657 Main Street, Homer AK – 2/11/2019
- Motion to Appt. Appraisers 4025 Homer Split Road, Homer AK – 2/11/2019
- Online New Mexico-Based Dispersal Auction Takes Place Feb. 22-25 – 2/14/2019
- Sport Horse Auction: Go to the Auction – 2/14/2019
- Response to Motion to Stay Civil Cases – 2/5/2019
- Frequently Asked Questions – 2/5/2019
- Order Appointing Appraisers & Confirming Private Sale – 2/1/2019
- Receiver’s Initial Status Report – 1/31/2019
- Motion to Sell & Abandon Assets – 1/17/2019
- Motion Private Sale of Properties – 1/14/2019
- Court Order – 1/3/2019
- State: Ponzi scheme involving Utah rare coin dealer ‘larger than previously alleged’ – 12/18/2018
- CFTC revises estimate of investor losses caused by precious metals Ponzi scheme – 12/17/2018
- Utah rare coin dealer accused of running multimillion-dollar Ponzi scheme – 11/16/2018