WASHINGTON, D.C. (New York Post) — A CIA officer charged with stealing tens of millions of dollars’ worth in gold bars and stashing them at his Virginia home pleaded guilty to defrauding the federal government on Tuesday.
David Rush, 49, entered the guilty plea in federal court after copping to having fraudulently obtained nearly $194 million by abusing his position to handle top secret matters at the agency.
He also copped to providing a foreign official with sensitive intel about the identity of a secret source for the US government, according to court docs.
“Federal employees are entrusted with serving the American people, not themselves,” said Attorney General Todd Blanche in a statement. “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.”
Prosecutors alleged that Rush, who served in the senior executive-level position and held a top secret security clearance, lied about his education and military experience before entering the CIA — and eventually faked an entire program to pilfer government funds.
Rush obtained 298 gold bars and also oversaw a total of $145 million in wire transfers that ended up being used to purchase fine watches, luxury real estate and cars.
Before being indicted, the CIA had conducted an internal investigation into the movement of the funds and referred the matter to the FBI.
Agency director John Ratcliffe said in a statement that Rush “abused his position and betrayed the public trust and should be held fully accountable for his actions.”
Rush requested the substantial amount of foreign currency and gold bars from the agency between November and March, according to a federal affidavit.
His requests were fulfilled, but the CIA could find no official records explaining the operational purpose for the valuables.
Dan Meyer, a partner at law firm Tully Rinckey specializing in security clearance issues, told The Post the funds appeared to be “resources to be used in US operations overseas” that were “diverted for his personal use.”
“I doubt this is coming from a foreign source,” Meyer added.
National security experts expressed alarm that Rush managed to manipulate his way into the role given the sensitivity of the work.
Former CIA staff operations officer Tracy Walder told The Post she was stunned that Rush bypassed background checks to obtain top-secret clearance and millions in agency gold.
“The fact that this slipped through the cracks makes me concerned that there are other people who slipped through the cracks,” she said.
Walder emphasized that the agency’s vetting procedures are typically exhaustive.
“They don’t just verify your college. They came to my sorority house. They talked to my sorority sisters. They came to my parents’ house. They went to the friends of the friends of my parents,” Walder said of her own vetting experience.
Rush worked in the CIA’s Directorate of Science and Technology, though officials have declined to disclose specific details about his duties.
His applications listed a bachelor’s degree in mathematics and information systems from Clemson University, a master’s degree in electrical engineering from Rensselaer Polytechnic Institute in Upstate New York, as well as US Naval Test Pilot certifications.
None of those things were true.
