Gaylen Rust was an active member of the society who ran several businesses. His main business was Rust Rare Coin (RRC). Through this company, he managed a Silver Pool investment of about 300 financiers investing in the enterprise. Garylen Rust limited investors made their investment decisions based on the notion that the silver bought with their investment would be kept in Brink’s Global Services USA (“Brink’s”). Brinks Global specializes in the secure transportation and handling of valuable goods throughout logistics. The corporation was the biggest, and among the most trusted financial institution, which made the investors believe that the silver would be safe from theft, this decision was wise because silver is a variable product, and may get stolen if not well stored — assuring their investment of being safe.
The investors decided to invest because only half of the silver would get sold so that in case the deal went wrong they still had silver left. Making an investment decision based on this was terrible because they would still have incurred losses. They also trusted Rust because he had an account under the name of (RRC) at Salt Lake City and Los Angeles Banking Corporation and used to conduct business through this bank. Which convinced investors that the trade would be transparent because they could monitor the reports of the account; this decision was poor because Rush could cooperate with the bank management to cook their books. Investors saw this silver investment as a secure asset and profitable since Rust assured them that in his worst year, he had earned a 12% profit from his initial investment investing this was gossip. But did not back this with actual proof so making an investment decision based on this was unwise.