Ex-CIA official admits fraud after feds found 300 gold bars at his home, docs say

Ex-CIA official admits fraud after feds found 300 gold bars at his home, docs say A former senior CIA official has pleaded guilty to abusing his position and government funds for personal gain - Bookmark Become an Independent member to bookmark this article Already a member? Log in A former senior CIA official has admitted in a Virginia federal court to orchestrating a scheme that diverted government funds to enrich himself through Florida real estate and hundreds of gold bars worth tens of millions of dollars. David J. Rush entered a guilty plea on Tuesday to one count of wire fraud, according to court records. Rush fabricated a "highly classified" government initiative to rationalize purchasing luxury properties in South Florida that he intended to resell for personal profit, according to a court filing. The documents show he separately contrived a bogus "sensitive government activity" to obtain the gold bars. Prosecutors also accuse Rush of deceiving colleagues and government contractors about his academic credentials, military background, and the fake program he created, falsely claiming high-ranking U.S. officials authorized it. "Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions," the court filing states. Rush entered his plea during a hearing in Alexandria, Virginia, with District Judge Michael Nachmanoff scheduled to sentence him on Jan. 28. Several months ago, Rush attempted to fraudulently authorize the release of $100 million from a government contract, according to Tuesday's filing. He directed someone else to transfer about $145 million to a holding company he established, using the funds to buy four "luxury" properties in Palm Beach and Hobe Sound, Florida. In earlier filings, prosecutors stated that Rush stashed over $40 million worth of federal government gold bars at his home in Virginia. They further accused him of fraudulently claiming tens of thousands of dollars in compensation for military leave following his honorable discharge from the U.S. Navy in 2015. Following his arrest, investigators searched Rush's home and seized roughly 300 gold bars, approximately $2 million in U.S. currency, and around 35 luxury watches, an FBI agent’s affidavit states. A judge ordered Rush detained without bond after his initial court appearance earlier this year. During a June hearing, defense attorney Jessica Carmichael described the gold bars as "basically a non-issue" and "nothing more than a sensational tidbit," noting Rush had not initially been charged over their discovery. She stated he properly acquired the gold and kept it in a basement safe, adding: "Mr. Rush never claimed they were his,". Authorities say Rush falsified his educational and military credentials on job applications, claiming he was a former Navy pilot with a bachelor’s degree from Clemson University in South Carolina and a master’s degree from Rensselaer Polytechnic Institute in New York. Investigators confirmed he did not attend either school or serve as a pilot. According to the FBI affidavit, Rush enlisted in 1997 and was honorably discharged from the U.S. Navy Reserves as a lieutenant in 2015.