A former senior Central Intelligence Agency official pleaded guilty on Tuesday to charges of wire fraud, admitting he exploited his government position to amass hundreds of gold bars and luxury real estate valued at more than $40 million.
David J. Rush, 49, of Ashburn, Virginia, entered his plea in a U.S. District Court in Virginia. According to court filings, Rush fabricated a “highly classified” government initiative to justify purchasing high-end properties in south Florida with the intent of reselling them for personal profit. He also invented a fictitious “sensitive government activity” to facilitate the acquisition of the gold bars.
The Justice Department stated that Rush’s fraudulent activities resulted in approximately $194 million in total losses to the federal government. This figure includes an estimated $1.8 million spent on privately chartered flights that Rush authorized for personal use at taxpayer expense.
Additionally, a new court filing revealed that during investigations, Rush admitted to disclosing the identity of a confidential U.S. government source to a foreign government official. The documents did not identify the specific country involved.
Prosecutors allege that Rush frequently lied to colleagues and contractors regarding his military and academic background, as well as the legitimacy of his invented programs, falsely claiming they were sanctioned by high-ranking U.S. officials. “Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions,” the filing reads.
Recent filings indicate that several months ago, Rush attempted to fraudulently authorize the release of $100 million from a government contract. He allegedly directed an associate to transfer roughly $145 million to a holding company he established, using those funds to acquire four luxury properties in Palm Beach and Hobe Sound, Florida.
Rush was arrested earlier this year after FBI agents searched his residence and seized approximately 300 gold bars, nearly $2 million in U.S. currency, and about 35 luxury watches. He has also been accused of fraudulently claiming tens of thousands of dollars in compensation for military leave following his honorable discharge from the U.S. Navy 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 added that the agency immediately referred the case to the FBI upon discovering evidence of the crimes during an internal investigation.
“David Rush abused his position and betrayed the public trust and should be held fully accountable for his actions,” Ratcliffe said.
Rush pleaded guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison. He is scheduled to be sentenced on January 28 by District Judge Michael Nachmanoff in Alexandria, Virginia. A judge previously ordered Rush to be held without bond.
Leaking a source’s identity to a foreign official on top of all this is truly alarming. National security was compromised.
How exactly does one fabricate a classified program so easily? This screams systemic failure at the CIA.
It is absolutely disgusting that he charged the taxpayers for private jets while stealing hundreds of millions. Justice needs to be swift.
Three hundred gold bars? I just can’t carry that many. Talk about heavy baggage.