Washington — A former CIA official, David Rush, admitted guilt in a major fraud case involving diverted government funds and luxury purchases. Rush pled guilty on Tuesday to a single count of wire fraud in a Virginia federal court. He concocted fake classified programs to obtain nearly $200 million from the government for personal gain, including buying Florida mansions and gold.
As part of a plea deal, Rush agreed to forfeit assets worth at least $194 million. These include 298 gold bars, two BMWs, 35 luxury watches, and four upscale homes in Florida. He could face a prison sentence of up to 20 years.
Prosecutors revealed that Rush created a fraudulent classified program to channel $145 million through a front company. This money was used to buy properties in Florida for resale. Additionally, another fabricated project justified his acquisition of gold bars.
“Although the real estate and gold acquisitions involved different transactions and intermediaries, they were executions of the same overarching scheme,” stated the criminal information document.
The document mentioned Rush’s access to sensitive government programs without specifically naming the CIA. The investigation started after the CIA referred the case to the FBI. Rush was noted as a former Senior Executive Service level employee at a Virginia-based government agency. He directed a contractor, known as Company 1, to move $145 million to a controlled holding company, which then bought Florida properties.
Arrested in May, FBI agents discovered gold bars, $2 million in cash, and luxury watches at Rush’s home. Prosecutors reported the holding company retained about $38.6 million. Rush had contractors transfer $45 million in January for a purported Top-Secret project involving high-value commodity deliveries. This transaction supported the wire fraud charge.
Initially, Rush faced a charge of stealing public money. He submitted false information regarding his education and military service on government applications and took fraudulent military leave. In June, a federal judge deemed him a severe flight risk, ordering him to remain in custody. Government attorneys described Rush as a “master manipulator” and untrustworthy, citing his deceptive behavior towards neighbors and co-workers.
Callie Teitelbaum contributed to this report.
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