Ex-CIA official pleads guilty to $194 million fraud scheme

Summarised from 5 outlets · Updated 6 Oct, 22:31 · Archive

A former senior CIA official pleaded guilty to wire fraud after diverting nearly $194 million in government money to buy Florida mansions and gold bars.

David J Rush, a former senior CIA official, pleaded guilty on Tuesday to one count of wire fraud in Virginia federal court. He admitted to inventing fake classified programs and fabricating a separate bogus government activity to divert nearly $194 million in government funds for personal enrichment.

Rush directed approximately $145 million in wire transfers to a holding company he formed, which he then used to purchase four luxury properties in Palm Beach and Hobe Sound, Florida. He intended to resell these homes for profit. Separately, he fabricated a scheme to justify the acquisition of 298 gold bars. An FBI raid on his Virginia home in May uncovered the gold bars, worth $40 million, along with $2.1 million in cash, 35 luxury watches and two BMWs.

To reach his senior position at the CIA and obtain a top-secret security clearance, Rush lied about his credentials. He claimed to be a graduate of the U.S. Air Force Test Pilot School and the director of test operations for a joint Army/Navy unit. In reality, he served primarily as an information systems technician in the Navy, held no FAA pilot licences and was never a pilot. Prosecutors said he lied to colleagues and government contractors about his background and the fake programs he invented, falsely claiming they were authorised by high-ranking US officials.

According to a court filing, several months before his guilty plea, Rush attempted to fraudulently authorise the release of $100 million from a government contract. The filing states: 'Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions.'

As part of his plea agreement, Rush agreed to forfeit at least $194 million in assets, including the gold bars, luxury watches, vehicles and properties. He faces up to 20 years in prison. Attorney General Todd Blanche said in a statement: 'Federal employees are entrusted with serving the American people, not themselves.' CIA Director John Ratcliffe said Rush 'abused his position and betrayed the public trust and should be held fully accountable for his actions.'

District Judge Michael Nachmanoff is scheduled to sentence Rush on 28 January.

How it is being reported

• Top CIA boss arrested with $40million in gold bars admits to handing secret intel to foreign officialA former senior CIA official admitted he abused his position and government funds to enrich himself by acquiring Florida real estate and hundreds of gold bars worth over $40 million.Daily Mail · 6 Oct, 22:21
• Ex-CIA official pleads guilty to using position and government funds to enrich himselfDavid J Rush used his job at spy agency to acquire Florida real estate and gold bars worth tens of millions of dollars A former senior CIA official pleaded guilty on Tuesday in Virginia to a charge that he abused his position and government funds to enrich himself by acquiring Florida real estate and hundreds of gold bars worth tens of millions of dollars, according to court records. David J Rush fabricated a “highly classified” government program to justify the acquisition of luxury property in south Florida that he intended to resell for personal profit, according to a court filing. Rush…Guardian World · 6 Oct, 21:27
• Ex-CIA officer found with over $40M in gold bars pleads guilty to $194M fraudDavid J. Rush fabricated military credentials to climb CIA ranks, then siphoned $194 million in taxpayer dollars into gold bars and luxury watches.Fox News · 6 Oct, 21:02
• CIA officer caught stealing millions in gold bars pleads guilty to colossal wire fraud schemeRush obtained 298 gold bars and also oversaw a total of $145 million in wire transfers that ended up being used to purchase fine watches, luxury real estate and cars.New York Post · 6 Oct, 20:34
• Ex-CIA official found with $40 million in gold bars admits to sprawling schemeA former CIA official admitted to inventing fake classified programs to divert nearly $200 million in government money that was used to buy Florida mansions and gold bars.CBS News · 6 Oct, 20:25

In this story: David J Rush · CIA · FBI · Florida · Virginia · Todd Blanche · John Ratcliffe · Michael Nachmanoff

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