Ex-CIA official admits to defrauding US government of $200 million 

Hind Al Soulia - Riyadh - WASHINGTON — A former CIA officer arrested after authorities discovered roughly $40 million worth of gold bars in his Virginia home pleaded guilty in federal court on Tuesday to a single count of wire fraud, admitting he defrauded the US government out of nearly $200 million for his personal benefit.

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 separately concocted a bogus “sensitive government activity” to obtain the gold bars, the filing says.

David Rush was previously described by prosecutors as a "master manipulator" who used his clandestine position to amass millions worth of gold bars and luxury watches -. though the government revealed in Tuesday's hearing the extent of his alleged deception far exceeded what was previously known to the public.

The nearly $200 million in payments to Rush, which dwarfs previous amounts disclosed as part of his case, will likely only further draw public and congressional scrutiny to the intelligence community to provide more transparency regarding its methods in doling out taxpayer dollars to agents and the oversight that follows such exchanges.

Prosecutors also accuse Rush of lying to colleagues and government contractors about his military and academic credentials and the fake program that he invented, falsely claiming it was authorized by high-ranking US officials.

“Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions,” the court filing says.

Rush pleaded guilty to one count of wire fraud during a hearing in Alexandria, Virginia, court records show. District Judge Michael Nachmanoff is scheduled to sentence Rush on Jan. 28.

Several months ago, Rush tried to fraudulently authorize the release of $100 million from a government contract, according to Tuesday’s filing. He directed somebody else to transfer approximately $145 million to a holding company formed at his direction, then used those funds to acquire four “luxury” properties in Palm Beach and Hobe Sound, Florida, the filing says.

In previous court filings, prosecutors said Rush stashed over $40 million worth of gold bars from the federal government at his Virginia home. They also accused him of fraudulently claiming tens of thousands of dollars in compensation for military leave after he was honorably discharged from the US Navy in 2015.

Rush was arrested after investigators searched his home and seized approximately 300 gold bars, roughly $2 million in US currency and about 35 luxury watches, according to an FBI agent’s affidavit. A judge ordered Rush to be held without bond after his initial court appearance earlier this year.

During a hearing in June, defense attorney Jessica Carmichael said Rush wasn’t charged initially with any crimes related to the discovery of the gold bars, which she referred to as “basically a non-issue” and “nothing more than a sensational tidbit.”

She said her client properly obtained the gold bars and kept them locked in a safe in his basement.

“Mr. Rush never claimed they were his,” Carmichael said.

Authorities say Rush lied about his education and military background on job applications, falsely claiming to be a former navy pilot who graduated with a bachelor’s degree from Clemson University in South Carolina and a master’s degree from Rensselaer Polytechnic Institute in New York.

Investigators determined that he did not serve as a navy pilot and did not attend either school. Rush enlisted in the navy in 1997 and was honorably discharged from the navy reserves as a lieutenant in 2015, according to the FBI affidavit.