Former CIA officer pleads guilty in gold bars case, admits to defrauding government of nearly $200M
The $200 million in payments dwarfs previous amounts disclosed in the case.
The 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 U.S. government out of nearly $200 million for his personal benefit.
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.
The case has drawn widespread intrigue and raised major questions regarding the intelligence community's management in overseeing the secretive systems that grant officials like Rush the ability to amass high-value assets tied to their work.
According to a summary of his plea agreement provided by a senior DOJ prosecutor, Rush is alleged to have engaged in two separate criminal schemes where he fabricated so-called Special Access Programs to convince senior officials to clear payments to him totaling over $190 million that he sought to use for his personal benefit.
In the first instance, prosecutors said Rush received approximately $145 million that he used to purchase luxury real estate properties in Palm Beach, Florida, and then carry out home improvements so he could then flip them and sell for a profit. Portions of the $145 million also went toward purchases of luxury vehicles and watches, all while Rush is alleged to have lied to officials that he had clearance for the payments from high-level officials in the Trump administration.
A second scheme, prosecutors said, involved Rush's fabrication of a separate program that resulted in officials approving 298 gold bars to be provided to him that he later falsely claimed had been distributed, until the roughly $46.4 million worth of gold was discovered in a search of his residence in May.
Rush also admitted to fraudulently seeking compensation for roughly $1.8 million in charter flights that were for his personal benefit.
Another previously unreported disclosure from Tuesday's proceedings included an admission by Rush that he once disclosed top secret information to a foreign government official regarding the identity of a U.S. clandestine source. Prosecutors did not identify the foreign government who received the information or Rush's motives in sharing the source's identity, however.
"Following an internal investigation that identified potential crimes, CIA immediately referred this matter to the FBI," said CIA Director John Ratcliffe. "David Rush abused his position and betrayed the public trust and should be held fully accountable for his actions. We appreciate our law enforcement partners in the FBI and Department of Justice for securing this outcome. The Agency is committed to ensuring that those entrusted with our Nation's secrets are held to the absolute highest standard."
Attorney General Todd Blanche said, "Federal employees are entrusted with serving the American people, not themselves. The Trump Administration is committed to rooting out waste, fraud, and abuse in the federal government, including by prosecuting those who foolishly defraud American taxpayers."
Rush has remained in government custody since his arrest in May, despite only facing initial charges of theft of public money that accused him lying about his background and committing time card fraud regarding claims about military leave.
The single wire fraud charge Rush pleaded guilty to Tuesday carries a maximum potential sentence of 20 years in prison and Rush separately agreed to $195 million in restitution as part of his plea.
Rush's sentencing has been set for Jan. 28 of next year.
