Former CIA official David J. Rush pleaded guilty to wire fraud after prosecutors accused him of exploiting his government position to obtain luxury Florida properties, millions in gold and other benefits at taxpayers’ expense.
Rush, 49, of Ashburn, Virginia, pleaded guilty Tuesday in federal court in Alexandria to one count of wire fraud, which carries a maximum sentence of 20 years in prison. He is scheduled to be sentenced Jan. 28.
According to court filings, Rush invented a highly classified government program to justify obtaining luxury real estate in Florida that he intended to resell for personal profit. He also created a fictitious sensitive government activity to obtain hundreds of gold bars worth more than $40 million.
The Justice Department estimates Rush’s conduct caused approximately $194 million in losses to the federal government. That figure includes more than $1.8 million in privately chartered flights that Rush allegedly authorized for his personal use and an attempted transfer of roughly $145 million to a holding company he established.
Prosecutors say Rush used his government authority and fabricated credentials to convince colleagues and contractors that his instructions were legitimate. He allegedly directed the acquisition of four luxury properties in Palm Beach and Hobe Sound, Florida, after attempting to authorize the release of $100 million from a government contract.
Authorities also seized approximately 300 gold bars, about $2 million in cash and roughly 35 luxury watches during a search of Rush’s Virginia home. Previous court filings valued the gold at approximately $46 million.
The case also involves national security concerns. According to a recent filing, Rush admitted during questioning that he disclosed the identity of a secret U.S. government source to an official from a foreign government. Prosecutors did not identify the country involved.
Investigators further accused Rush of falsely claiming military and academic credentials. He allegedly told employers that he had been a Navy pilot and held degrees from Clemson University and Rensselaer Polytechnic Institute. Investigators determined that he did not attend either school and had not served as a Navy pilot.
Rush did serve in the Navy, enlisting in 1997 and later being honorably discharged from the Navy Reserve as a lieutenant in 2015. Prosecutors also accused him of improperly claiming tens of thousands of dollars in compensation for military leave.
Attorney General Todd Blanche said federal employees are entrusted with serving the public rather than using their positions for personal gain. CIA Director John Ratcliffe said the agency referred the matter to the FBI after an internal investigation uncovered evidence of Rush’s alleged crimes.
Rush was arrested after investigators searched his home earlier this year. A judge ordered him held without bond following his initial appearance.
His attorney previously disputed the significance of the gold found at his home, saying Rush legally obtained the bars, kept them secured, and never claimed they belonged to him. His attorney declined to comment after Tuesday’s guilty plea.
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