Sat, May 2, 2015

A Utah man once considered a "high roller" in West Wendover's casinos has been convicted by a jury on drug, money laundering and tax charges stemming from a money laundering scheme that involved pumping nearly $400,000 in drug money through slot machines.

The verdict for Robert Thomas Rust was handed down Thursday in Salt Lake City's 3rd District Court after a three-day trial.

Jurors found the 35-year-old Rust guilty on one count of second-degree felony money laundering, one count of third-degree felony distribution of a controlled substance and two counts of third-degree felony tax evasion.

Rust faces a prison term of one-to 15 years for the second-degree felony and punishment of up to five years in prison for each of the third-degree felonies when he is sentenced by Judge Paul Parker on June 8.

Court papers say Rust and his wife, Susana Montano Rust, 41, used slot machines at the Wendover Nugget Hotel and Casino to launder $384,569 — funds investigators say the couple allegedly acquired through the sale of methamphetamine from their home in Sandy between January 2011 and May 2012.

Investigators found that in one month alone, Rust pumped more than $150,000 into casino slots, the documents say. The practice of running criminal proceeds through a casino and claiming the money as gambling winnings has been commonly used, prosecutors say, however such funds are considered taxable income.

Charging documents contend the Rusts could never legitimately have had so much money for gambling. State and federal tax returns for 2011 show Rust worked at a restaurant earning roughly $18,700 annually. Susana Rust worked for a commercial cleaning company, and earned only about $8,000 annually, the documents state.

Rust was not originally charged with any drug crimes, when prosecutors first filed the case in 2013. He had been scheduled for a trial last November, but failed to appear. He was arrested in January.

Prosecutors had also charged Susana Rust as a co-defendant in her husband's case, but has never been arrested. A warrant for her arrest is outstanding.

Court papers also show the Utah Attorney General's Office is seeking to seize $37,154.37 and one of the Rusts' vehicles.