Former CIA official pleads guilty to wire fraud involving $40 million in gold bars

A former senior CIA official pleaded guilty in a Virginia federal court to a wire-fraud charge that involved misusing government resources to purchase luxury property in south Florida and to obtain hundreds of gold bars worth more than $40 million. Court filings say David J. Rush fabricated a classified program to justify the real-estate purchases and created a fictitious "sensitive government activity" to acquire the gold.

The Justice Department estimates the fraud cost the government about $194 million, including $1.8 million in private charter flights that Rush authorized for personal use. Prosecutors also allege that Rush provided a foreign government official with the identity of a secret U.S. source, though the filing does not identify the foreign party.

Rush, 49, of Ashburn, Virginia, pleaded guilty to a single count of wire fraud, which carries a maximum sentence of 20 years. He is scheduled for sentencing on Jan. 28 in Alexandria, Virginia.

Federal investigators previously seized roughly 300 gold bars, about $2 million in cash and 35 luxury watches from Rush’s home. A judge ordered him held without bond after his initial appearance.

Attorney General Todd Blanche said federal employees are expected to serve the public, not themselves. CIA Director John Ratcliffe said the agency referred the matter to the FBI after an internal review and that Rush "abused his position and betrayed the public trust".

Rush’s defense attorney, Jessica Carmichael, characterized the gold-bar discovery as a "non-issue" and said her client never claimed ownership of the bars. She declined to comment on the guilty plea.

Investigators also found that Rush falsified his military and academic credentials, falsely claiming to be a former Navy pilot and to hold degrees from Clemson University and Rensselaer Polytechnic Institute. Records show he served in the Navy Reserve and was honorably discharged as a lieutenant in 2015.