Former CIA official pleads guilty, forfeits $194 million in gold and property
David Rush admitted to creating fictitious classified programs to divert nearly $200 million in government funds, leading to a guilty plea and a forfeiture of assets valued at about $194 million.
A former senior executive who worked for a U.S. intelligence agency pleaded guilty in federal court in Virginia to a single count of wire fraud after prosecutors said he fabricated classified programs to siphon government money. The scheme allegedly diverted roughly $145 million through a front company, which Rush used to purchase four luxury homes in Palm Beach and Hobe Sound, Florida, and to acquire gold bars, high-end watches and other assets.
Under the plea agreement, Rush will forfeit at least $194 million, including 298 gold bars, two BMW automobiles, 35 luxury watches and the four Florida properties. He faces a potential sentence of up to 20 years in prison.
Prosecutors detailed that Rush directed contractors and subcontractors to move the funds to a holding company he controlled, then used the money to buy the real estate and to obtain gold bars by claiming they were needed for a “Top-Secret” project. A search of his home in May uncovered the gold, $2 million in cash and numerous luxury items.
"master manipulator" – government lawyers described Rush during a detention hearing. "cannot be trusted" and "fully willing and able to skirt the rules" – a Justice Department attorney said of the defendant.
A federal judge ordered Rush to remain in custody pending sentencing, citing a severe flight-risk concern.