A former senior CIA official has pleaded guilty to a massive fraud scheme that cost the US government almost $194 million and involved hundreds of gold bars, luxury properties and high-value watches.
David J. Rush, 49, of Ashburn, Virginia, admitted one count of wire fraud after prosecutors said he abused his senior government position and top-secret security clearance for personal gain.
The US Department of Justice said Rush created fictitious government authorities, including a fabricated Special Access Program, to obtain federal funds.
He ultimately obtained approximately $193.6 million from the US government.
FBI recovered 298 gold bars
FBI agents searched Rush’s Virginia home on May 19 and recovered 298 gold bars, approximately $2.1 million in cash, €104,795 and numerous luxury watches.
Prosecutors said the gold had cost the US government about $46 million.
Rush has agreed to forfeit the gold, cash, fraudulently obtained properties, 30 watches and two 2026 BMW Alpina vehicles.
Fake classified programme
According to court documents, Rush used his legitimate government authority to create the appearance that his instructions were genuine.
Prosecutors said he fabricated a supposedly highly classified programme and used government funds to acquire luxury property in Florida.
He also directed approximately $145 million in wire transfers which were ultimately used to purchase real estate, watches and at least one vehicle.
Rush had held a Top Secret/Sensitive Compartmented Information security clearance and prosecutors said he had also lied about aspects of his education and military experience while progressing through government service.
Classified information allegations
Separate reporting on the case says Rush admitted providing sensitive information concerning a clandestine US intelligence source to an unauthorised foreign government official.
Parts of proceedings involving classified material have been subject to heightened secrecy because of the national security information involved.
Faces up to 20 years
Rush pleaded guilty in federal court in Alexandria, Virginia.
He is due to be sentenced on January 28, 2027 and faces a maximum penalty of 20 years in prison, as well as supervised release, restitution, forfeiture and a possible fine.
The Department of Justice said its wider investigation remains ongoing.
