Alexandria, VA — A former CIA official pleaded guilty Tuesday to wire fraud after admitting he fabricated highly sensitive government programs to divert nearly $200 million in public funds.
Federal prosecutors said David Rush created fictitious classified programs and used them to steer about $145 million into a holding company he controlled. He then used government money to acquire gold bars, luxury real estate and other high-value assets.
As part of his plea agreement, Rush agreed to forfeit at least $194 million. FBI agents recovered 298 gold bars and roughly $2 million in cash during a search of his home, according to prosecutors.
Rush had previously been fired after authorities discovered he falsified portions of his academic and military background. Investigators are still examining whether additional money or property tied to the scheme remains undiscovered.
The case has also prompted scrutiny of the CIA’s internal vetting procedures. The intelligence community inspector general is investigating how false information on Rush’s background allegedly went undetected.
Authorities have separately examined Rush’s professional relationship with Deputy Defense Secretary Steve Feinberg. The FBI ultimately found no evidence of wrongdoing by Feinberg, according to reporting cited by the Associated Press.
Rush has not yet been sentenced. The plea represents one of the largest fraud cases involving a former U.S. intelligence official in recent years.
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