Ex-CIA Official Admits $40M Gold & Real Estate Fraud in VA

A former senior CIA official pleaded guilty Tuesday in Virginia to wire fraud, admitting he abused his position and government funds to acquire Florida real estate and hundreds of gold bars worth more than $40 million.

David J. Rush, 49, of Ashburn, Virginia, faces a maximum of 20 years in prison. District Judge Michael Nachmanoff will sentence Rush on Jan. 28 in Alexandria, Virginia.

Court records show Rush fabricated a "highly classified" government program to justify acquiring luxury properties in South Florida for personal profit. He also created a bogus "sensitive government activity" to obtain the gold bars. Prosecutors state Rush's actions cost the federal government approximately $194 million.

Prosecutors accuse Rush of lying to colleagues and government contractors about his military and academic credentials, falsely claiming his invented program had high-level US official authorization.

Several months ago, Rush attempted to fraudulently authorize the release of $100 million from a government contract. He directed the transfer of approximately $145 million to a holding company he formed, using those funds to buy four luxury properties in Palm Beach and Hobe Sound, Florida. Investigators seized about 300 gold bars, roughly $2 million and about 35 luxury watches from Rush's home.