ALEXANDRIA, Va. — A former senior CIA official pleaded guilty Tuesday to wire fraud after using fabricated classified programs to obtain government money for gold bars and luxury property, bringing a case that began with a basement discovery to a guilty plea.
David J. Rush entered the plea on October 6 in federal court in Alexandria. Court filings describe four properties in Palm Beach and Hobe Sound, Florida, acquired through a holding company, with plans to resell them for personal profit, according to Associated Press reporting on the court records.
The Justice Department said Rush, 49, of Ashburn, Virginia, fraudulently obtained $193,590,400. He held a senior executive position and Top Secret/Sensitive Compartmented Information clearance.
Fake programs opened the door to government funds
Rush invented government authorities, including a Special Access Program, and directed approximately $145 million in wire transfers, prosecutors said.
He falsely told colleagues and contractors that senior US officials had approved his activities. A separate fabricated government operation provided the justification for obtaining gold, according to the court filing cited by AP.
Authorities said Rush also misrepresented his education and military experience. Earlier ABC News reporting on the criminal complaint described an investigation into false credentials and government compensation. His initial charge in May was theft of public money.
The latest DOJ account says investigators recovered 298 gold bars, approximately $2.1 million in cash and €104,795. The gold cost the government approximately $46 million.
Attorney General Todd Blanche said: “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.” An internal agency investigation led to the FBI referral.
Sentencing is set for January
Rush agreed to forfeit the gold, currency, fraudulently obtained properties, 30 luxury watches and two 2026 BMW Alpinas.
He is scheduled for sentencing on January 28, 2027, and faces up to 20 years in prison, along with restitution, forfeiture, a fine and supervised release. His sentence has not yet been determined.
The plea follows a tentative agreement announced in September. Lawyers said resolving the case before indictment would conserve resources; the proceedings also raised difficulties involving classified information.
The guilty plea resolves Rush’s wire-fraud charge, while DOJ says its investigation continues. An Intelligence Community inspector general investigation has also been requested.
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