Former CIA Official Pleads Guilty to $194 Million Fraud Involving 298 Gold Bars and Florida Properties
David J. Rush, a former senior federal official with Top Secret clearance, admitted to defrauding the government of about $194 million by inventing classified programs to fund gold bars, luxury real estate, and private jets.
A former senior federal official with Top Secret clearance pleaded guilty Tuesday to defrauding the U.S. government of approximately $194 million by fabricating classified programs to finance a lavish personal spending spree that included 298 gold bars, four luxury South Florida properties, and two BMWs.
David J. Rush of Ashburn, Virginia, entered the plea to one count of wire fraud in federal court in Alexandria, after reaching a tentative agreement in September. Under the final deal, he owes at least $195.4 million in restitution. Court documents state the fraud caused $193.6 million in losses, including $1.8 million in private charter flights billed to the government.
Rush held senior executive positions and a TS/SCI clearance at an agency identified in filings only as «Government Agency 1.» CIA Director John Ratcliffe said the agency referred the case to the FBI after an internal investigation «identified potential crimes.»
«David Rush abused his position and betrayed the public trust and should be held fully accountable for his actions,» Ratcliffe said. Attorney General Todd Blanche added, «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.»
According to court documents, Rush created two fictitious programs beginning around October 2025. The first was a fake Special Access Program that supposedly required purchasing luxury real estate in South Florida. Because his job allowed him to identify requirements and approve resources, he effectively became his own approving official.
Rush held fake briefings to admit contractors into the invented program—a process known as a «read-in»—and told them the work was highly classified, even having one sign a non-disclosure agreement. When an agency contracting official questioned the spending, Rush claimed the official had no «need to know.»
Between November 2025 and March 2026, Rush directed a government contractor to send about $145 million to 0701 Holdings LLC, a company he set up that billed for «consulting.» That money was used to buy two Palm Beach homes for $21.9 million and $27 million, a $13.65 million Palm Beach parcel, and a $40 million parcel in Hobe Sound. Rush planned to resell the properties for profit, at one point calling a guesthouse «super unique and cool» while questioning whether buying it would «hamstring us when we're selling.»
For the second program, Rush told a subcontractor's executive that a sensitive assignment for about six people allowed the use of gold, diamonds, or cryptocurrency. The subcontractor bought 298 gold bars at a cost to the government of $46,361,721, including fees, and delivered them in Pelican cases to a safe in Rush's Loudoun County office.
On May 19, FBI agents found all 298 bars at Rush's home, with serial numbers matching the subcontractor's records. They also discovered about $2.1 million in cash, €104,795, and more than 30 watches, including several Rolexes.
Rush obtained his position partly by lying about his background. He claimed to be a combat veteran and military pilot with a bachelor's degree from a South Carolina university and a doctorate from one in New York. However, court documents say he graduated from neither and never flew for the military. He left the Navy reserves in 2015 but claimed 392 hours of military leave from his civilian job starting in 2021.
In the statement of facts, Rush also admitted that in late 2025 he gave a foreign government official information about a U.S. clandestine human source.
As part of his agreement, Rush will forfeit the gold, cash, 35 watches, two 2026 BMW Alpina XB7s, $38.65 million seized from the LLC's account, and properties in Palm Beach and on Jupiter Island. He faces up to 20 years in prison at his sentencing, scheduled for Jan. 28, 2027.
The Justice Department said its investigation is continuing, and the Director of National Intelligence has asked the Inspector General for the Intelligence Community to investigate.
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