A former senior CIA official pleaded guilty Tuesday in Virginia to abusing his position and government funds to acquire Florida real estate and hundreds of gold bars worth over $40 million. The total losses to the federal government from David J. Rush’s fraudulent conduct were approximately $194 million, according to the Justice Department.
Prosecutors stated that Rush fabricated a “highly classified” government program to justify purchasing luxury property in South Florida for personal profit. He also concocted a bogus “sensitive government activity” to obtain the gold bars.
Rush, 49, of Ashburn, Virginia, pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Jan. 28 in Alexandria, Virginia. District Judge Michael Nachmanoff will preside over the sentencing.
According to court filings, Rush attempted to fraudulently authorize the release of $100 million from a government contract several months prior. He directed a subordinate to transfer approximately $145 million to a holding company he established. These funds were then used to purchase four luxury properties in Palm Beach and Hobe Sound, Florida.
In earlier filings, prosecutors detailed that Rush had stored roughly $46 million worth of gold bars, obtained from the federal government, in his Virginia home. He was also accused of falsely claiming tens of thousands of dollars in compensation for military leave after his honorable discharge from the U.S. Navy Reserve in 2015.
“Federal employees are entrusted with serving the American people, not themselves,” Attorney General Todd Blanche said in a statement. CIA Director John Ratcliffe stated that the agency promptly referred the matter to the FBI after an internal investigation uncovered evidence of Rush’s alleged crimes.
“David Rush abused his position and betrayed the public trust and should be held fully accountable for his actions,” Ratcliffe said.
Rush was arrested following an FBI investigation that searched his home and resulted in the seizure of approximately 300 gold bars, about $2 million in U.S. currency, and roughly 35 luxury watches. A judge ordered Rush held without bond after his initial court appearance earlier this year.
During a hearing in June, Rush’s defense attorney, Jessica Carmichael, described the gold bars as “basically a nonissue” and “nothing more than a sensational tidbit,” asserting that her client had properly obtained them. However, authorities maintain that Rush lied about his educational and military background on job applications, falsely claiming to be a former Navy pilot who graduated from Clemson University and Rensselaer Polytechnic Institute. Investigators determined he did not serve as a Navy pilot and did not attend either institution. Rush enlisted in the Navy in 1997 and was honorably discharged as a lieutenant in 2015.