A former high-ranking CIA official is facing allegations of hiding over $40 million in gold bars, purportedly taken from the federal government, at his Virginia residence. The official, David J. Rush, is accused of creating a fictitious spy network to cover up the treasure.
Rush is also charged with fraudulently obtaining tens of thousands of dollars in military leave compensation after being honorably discharged from the Navy in 2015.
Authorities arrested Rush last month following a search of his home, where they reportedly discovered over 300 gold bars, approximately $2 million in cash, and around 35 luxury watches, as detailed in an affidavit from an FBI agent.
According to sources familiar with the investigation, Rush allegedly devised a ‘special access program.’ This program, described by The Washington Post, acted as a black box to shield highly sensitive operations, even from agents with the highest security clearances.
He reportedly enlisted two colleagues into the scheme, possibly without their full awareness, and bound them to secrecy, according to those familiar with the situation.
Rush allegedly used one of the agents to use a government contract that he made up himself to transfer millions to use for his own program.
Two people familiar with the matter told the outlet that several CIA officials have been placed on leave pending an investigation, while a senior employee at a US defense contractor was fired.
Many have wondered how Rush – whose job involved him working on the government’s highest sensitivity programs – could have created such a program without getting clearance from his bosses.
David J Rush is charged with fraudulently claiming tens of thousands of dollars in compensation for military leave after he was honorably discharged from the Navy in 2015
He was arrested last month after investigators searched his home and seized more than 300 gold bars, roughly $2million in US currency and about 35 luxury watches, according to an FBI agent’s affidavit
One official noted that to get to his position, Rush had to take blood tests, psych exams and even a polygraph before signing tons of forms and having multiple checks of his college transcripts.
Jim Himes, the ranking Democrat on the House Intelligence Committee, wondered: ‘This is just staggering, keeping gold bars and wads of cash in your house is not exactly top-notch tradecraft. From an oversight standpoint, how the hell did this happen?’
One source claimed that Rush put the program together as a failsafe to keep the federal government going in the event of a nuclear war or catastrophe.
The logline on the program was used to convince a defense contractor with ties to Washington to buy the large amounts of gold.
Rush was ordered to remain jailed until his trial after a hearing Friday where a defense attorney accused prosecutors of smearing the official with “sensational,” irrelevant allegations.
The defendant has both the means and motive to flee while the case against him is pending, US Magistrate Judge William Fitzpatrick ruled, citing Rush’s professional experience.
‘He’s in a different position than most people to flee and avoid detection by law enforcement,’ Fitzpatrick said.
Rush’s attorney, Jessica Carmichael, noted that Rush isn’t charged with any crimes related to the discovery of the gold bars, which she referred to as ‘basically a non-issue’ and ‘nothing more than a sensational tidbit.’
Many have wondered how Rush – whose job involved him working on the government’s highest sensitivity programs – could have created such a program without getting clearance from his bosses
Jim Himes, the ranking Democrat on the House Intelligence Committee, wondered: ‘This is just staggering, keeping gold bars and wads of cash in your house is not exactly top-notch tradecraft. From an oversight standpoint, how the hell did this happen?’
She said Rush properly obtained the gold bars and kept them locked in a safe in his basement.
‘Mr. Rush never claimed they were his,’ she said.
Between last November and March, Rush requested and received a ‘significant quantity’ of foreign currency and tens of millions of dollars in gold bars for ‘work-related expenses,’ according to the FBI affidavit.
Justice Department prosecutor Gavin Tisdale said Rush wasn’t supposed to have the gold bars at his home.
‘That’s the issue – his skirting of rules and regulations,’ he said.
Tisdale briefly summarized the case against Rush in open court after a portion of the hearing was sealed from the public. The evidence against Rush ‘grows stronger by the day,’ Tisdale told the magistrate.
‘Mr. Rush simply cannot be trusted to abide by this court’s conditions,’ he said.
Rush enlisted in the Navy in 1997 and was honorably discharged from the US Navy Reserves as a lieutenant in 2015, according to the affidavit.
Authorities claim Rush lied about his education and military background on job applications, falsely claiming to be a former Navy pilot who graduated with a bachelor’s degree from Clemson University in South Carolina and a master’s degree from Rensselaer Polytechnic Institute in New York.
Investigators determined that he didn’t serve as a Navy pilot and didn’t attend either school.
There is currently no evidence that Rush was working on behalf of a foreign country.
The FBI agent’s affidavit claimed that rush joined the agency in 2009, long before current Director John Ratcliffe rose to the top.
Friday’s hearing was largely kept secret from the public as attorneys debated the high security clearance case.
