A former senior CIA official pleaded guilty on Tuesday to wire fraud after prosecutors accused him of exploiting his government authority to acquire luxury property in Florida and hundreds of gold bars worth more than $40 million.
David Rush, 49, of Ashburn, Virginia, admitted to one count of wire fraud, which carries a maximum sentence of 20 years in prison. US District Judge Michael Nachmanoff is scheduled to sentence him on January 28 in Alexandria, Virginia.
According to a court filing, Rush invented a purported “highly classified” government programme to justify obtaining luxury real estate in south Florida that he planned to resell for personal profit. He separately created a fictitious “sensitive government activity” to obtain the gold bars.
The Justice Department said Rush’s conduct caused approximately $194 million in losses to the US government. That figure included more than $1.8 million in privately chartered flights that Rush authorised for his personal use at government expense.
Prosecutors also allege that Rush attempted to manipulate government contracts on a much larger scale. Several months ago, according to Tuesday’s filing, he tried to fraudulently authorise the release of $100 million from a government contract. He also directed another person to transfer approximately $145 million to a holding company established at his direction.
Rush then used those funds to purchase four properties described by prosecutors as luxury residences in Palm Beach and Hobe Sound, Florida.
The case also involves a significant intelligence-security allegation. During questioning by investigators, Rush admitted that he gave a foreign government official information identifying a secret source for the US government, according to the court filing. The document did not identify the country represented by the official.
Prosecutors further accused Rush of misleading colleagues and government contractors about his military and academic background, as well as the fictional government programme he claimed to have created. He allegedly told others that the programme had been authorised by senior US officials.
“Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions,” prosecutors said in the filing.
The investigation also uncovered a substantial quantity of gold. Previous court filings said Rush had stored approximately $46 million worth of federal government gold bars at his home in Virginia. When investigators searched the property, they seized about 300 gold bars, roughly $2 million in cash and around 35 luxury watches, according to an FBI agent’s affidavit.
A judge ordered Rush held without bond following his initial court appearance earlier this year.
Rush’s defence previously disputed the significance of the gold discovery. During a June hearing, defence lawyer Jessica Carmichael said Rush had not initially been charged with crimes relating to the gold bars. She described the issue as “basically a non-issue” and “nothing more than a sensational titbit”, while maintaining that Rush had properly obtained the gold and stored it securely in a basement safe.
“Mr Rush never claimed they were his,” Carmichael said. Carmichael declined to comment following Tuesday’s guilty plea.
The allegations also extend to Rush’s employment history. Authorities say he falsely claimed on job applications that he had served as a US Navy pilot and had earned a bachelor’s degree from Clemson University in South Carolina and a master’s degree from Rensselaer Polytechnic Institute in New York.
Investigators determined that Rush had not served as a Navy pilot and had not attended either university, according to the FBI affidavit. He enlisted in the US Navy in 1997 and was honourably discharged from the US Navy Reserve as a lieutenant in 2015.
The CIA said its own investigation led to the case being referred to the FBI. CIA Director John Ratcliffe said the agency had acted immediately after finding 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.
US Attorney General Todd Blanche said federal employees were entrusted with serving the American public rather than using their positions for personal benefit.
The guilty plea now moves the case towards sentencing, with prosecutors’ allegations encompassing government funds, luxury property, gold, personal travel, false credentials and the disclosure of information concerning a secret US government source.
