Washington — David Rush, a former CIA official discovered in May with roughly $40 million worth of gold bars at his residence, pleaded guilty Tuesday to creating fictitious classified operations and diverting nearly $200 million in government funds. Prosecutors say he used the money to acquire luxury properties in Florida and precious metals.
Rush admitted to one count of wire fraud during a hearing in federal court in Virginia.
Under the terms of his plea agreement, Rush will forfeit at least $194 million. The assets include 298 gold bars, two BMW vehicles, 35 high-end watches and four Florida homes. He could receive a prison sentence of up to 20 years.
According to a criminal information filed in the case, Rush fabricated a classified government initiative to channel $145 million through a front company. He used the proceeds to buy properties in Florida, which he planned to sell for a profit. Prosecutors also said he invented a separate supposedly sensitive government operation to explain the purchase of the gold.
“While the real estate and gold purchases involved separate transactions and intermediaries, they were part of one broader scheme,” prosecutors wrote. Rush allegedly created false classified authorizations, directed and approved the spending, instructed contractors and subcontractors to complete the transactions, and ultimately maintained control over the assets.
Prosecutors said Rush had worked with “highly sensitive and classified government programs,” though the filing does not identify the CIA as his former employer. The agency and FBI previously said the investigation began after the CIA referred the matter to federal investigators. An affidavit filed with the initial complaint described Rush as a former Senior Executive Service-level employee at a government agency in eastern Virginia.
Investigators said Rush directed an unnamed contractor, identified in court documents as Company 1, to send about $145 million to a holding company he had established. He then allegedly ordered workers at that firm and a subcontractor to transfer the money into another company under his control. The funds were used to purchase four properties in Palm Beach and Hobe Sound, Florida.
Rush was arrested in May after FBI agents searched his home and found the gold bars, $2 million in cash and luxury watches. Prosecutors said Tuesday that approximately $38.6 million remained in the holding company’s account.
Justice Department
The gold was allegedly bought after Rush told contractors he was involved in a “Top-Secret project” requiring him to deliver valuable commodities to unidentified recipients, according to the filing. One contractor sent $45 million to the holding company in January, forming the basis of the wire fraud charge.
Rush initially faced a charge of stealing public money. Investigators also alleged that he supplied false details about his education and military background on a government application and improperly claimed military leave after completing his service.
A federal judge ordered Rush to remain jailed in June while the case moved forward, ruling that he presented a serious risk of fleeing.
During the detention hearing, prosecutors described Rush as a “master manipulator” who falsely told neighbors he was a pilot, deceived colleagues and exploited his senior position and access. A Justice Department attorney said Rush “cannot be trusted” and was “fully willing and able to skirt the rules.”
