According to the Associated Press, court records show that former CIA senior official David J. Rush pleaded guilty in Virginia on September 6. He was accused of abusing his position and government funds for personal gain, purchasing real estate in Florida, as well as hundreds of gold bars worth over $40 million.
Judicial documents show that he fabricated a 'highly confidential' government project as an excuse to purchase luxury properties in southern Florida, with the intention of selling them for personal gain. The documents state that Rush also created another so-called 'sensitive government operation' in order to obtain these gold bars.
The US Department of Justice stated that Rush's fraud caused the federal government a total loss of approximately $194 million. The losses included more than $1.8 million in private chartered flight costs, which were approved by Rush for personal use, and all costs were paid by the government.
A recent court document states that during questioning by investigators, Rush admitted that he had disclosed the identity of a secret informant of the U.S. government to an official of a foreign government. The document does not specify the country to which that foreign official belongs.
The prosecution also accused Rush of fabricating personal resumes for his colleagues and government contractors, lying about his military experience and educational background. He also claimed that the project he created was approved by high-ranking U.S. officials.
The court documents state: "Rush used his legitimate government authority to forge a credible personal identity and deceive others into following his instructions."
According to court records, 49-year-old Rush, who lives in Virginia, has been convicted of a telecommunications fraud charge, which carries a maximum sentence of 20 years in prison. District Judge Michael Nakhmanov is scheduled to deliver the verdict against Rush in Alexandria, Virginia on January 28 next year.
A document released on September 6 revealed that several months ago, Rush attempted to obtain approval for a $100 million loan from a government contract through fraud. The document states that he instructed others to transfer approximately $145 million to a holding company established under his direction. With this funds, he purchased four luxury properties in Palm Beach and Hobby Sands, Florida.
The prosecution stated in previous court documents that Rush hid gold bars worth approximately $46 million, which he obtained from the federal government, in his residence in Virginia. The prosecution also alleged that after retiring from the U.S. Navy in 2015, Rush falsely claimed several tens of thousands of dollars in compensation under the guise of naval leave.
U.S. Department of Justice
Director John Ratcliffe of the Central Intelligence Agency stated that following an internal investigation revealing evidence of Lash's criminal activity, the agency immediately transferred the case to the Federal Bureau of Investigation (FBI).
Lathcliffe stated in his statement: “David Rush abused his power and betrayed public trust, and he must bear full responsibility for his actions.”
A written testimony from an FBI agent shows that investigators searched Rush’s residence and found approximately 300 gold bars, around $2 million in cash, and 35 expensive watches. Subsequently, Rush was arrested. After his first court appearance earlier this year, the judge ordered Rush to be detained without bail.
At a hearing in June, defense lawyer Jessica Carmichael stated that the discovery of the gold bars did not initially lead to charges against Rush. She described the discovery of the gold bars as “not really a problem,” and said it was “just a gimmick to grab attention.” She claimed that the person who obtained the gold bars did so legally, and that the bars were always stored in a safe in their basement.
Cameron said: “Mr. Lash never claimed that the gold bars were his personal property.”
After the trial on Tuesday, Carmichael refused to comment on Rush's plea of guilty.
