A former senior CIA official pleaded guilty Tuesday in Virginia to wire fraud, admitting he used his position and government money to enrich himself, according to court records. Prosecutors say David J. Rush used the money to buy luxury real estate in Palm Beach County and Hobe Sound, along with hundreds of gold bars worth more than $40 million.
A court filing says Rush invented a “highly classified” government program to justify the property purchases, which he planned to resell for profit. He also allegedly created a fake “sensitive government activity” to obtain the gold bars. The Justice Department estimates the scheme cost the federal government about $194 million, including more than $1.8 million in private flights he authorized for personal use.
Rush, 49, of Ashburn, Virginia, also admitted to giving a foreign government official information about a secret U.S. government source, according to the filing. The filing does not name the country. Prosecutors also say he lied about his military service and education, claiming to be a former Navy pilot with degrees from Clemson and Rensselaer Polytechnic Institute. Investigators found he was never a Navy pilot and did not attend either school.
Rush faces up to 20 years in prison. U.S. District Judge Michael Nachmanoff is scheduled to sentence him Jan. 28 in Alexandria, Virginia. He has been held without bond since his initial court appearance earlier this year.
