- Sign up to our DC Insider newsletter - your guide to what's rocking Washington, rattling the White House and setting tongues wagging on the Hill
A former senior CIA official admitted he made up a phony 'highly classified' government program to help him buy Florida real estate and hundreds of gold bars worth over $40million.
asserted
he → sign → bars
David J Rush fabricated the scheme to justify the acquisition of luxury property in that he intended to resell for personal profit, according to a court filing.
uncertain
he → fabricate → filing
Rush separately concocted a bogus 'sensitive government activity' to obtain the gold bars, the filing says.
asserted
filing → concoct → bars
His fraudulent conduct cost the federal government approximately $194million in total losses, according to the Justice Department.
uncertain
conduct → cost → Department
Prosecutors also accuse Rush of lying to colleagues and government contractors about his military and academic credentials and the fake program that he invented, falsely claiming it was authorized by high-ranking US officials.
asserted
it → accuse → officials
'Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions,' the court filing says.
asserted
filing → use → directions
Rush pleaded guilty to one count of wire fraud during a hearing in Alexandria, Virginia, court records show.
asserted
records → plead → Alexandria
District Judge Michael Nachmanoff is scheduled to sentence Rush on January 28.
asserted
Nachmanoff → schedule → January
David J Rush (pictured) fabricated a 'highly classified' government program to justify the acquisition of luxury property in south Florida that he intended to resell for personal profit, according to a court filing
Gold bars and cash seized at the Virginia home of David Rush, a former CIA official who pleaded guilty to fraud
Several months ago, Rush tried to fraudulently authorize the release of $100million from a government contract, according to Tuesday's filing.
uncertain
Rush → picture → filing
He directed somebody else to transfer approximately $145million to a holding company formed at his direction, then used those funds to acquire four 'luxury' properties in Palm Beach and Hobe Sound, Florida, the filing says.
asserted
filing → direct → Beach
In previous court filings, prosecutors said Rush stashed over $40million worth of gold bars from the federal government at his Virginia home.
asserted
Rush → say → home
They also accused him of fraudulently claiming tens of thousands of dollars in compensation for military leave after he was honorably discharged from the US Navy in 2015.
asserted
he → accuse → 2015
Rush was arrested after investigators searched his home and seized approximately 300 gold bars, roughly $2million in U.S. currency and about 35 luxury watches, according to an FBI agent´s affidavit.
uncertain
investigators → arrest → affidavit
A judge ordered Rush to be held without bond after his initial court appearance earlier this year.
asserted
Rush → order → appearance
During a hearing in June, defense attorney Jessica Carmichael said Rush wasn't charged initially 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.'
asserted
she → say → tidbit
She said her client properly obtained the gold bars and kept them locked in a safe in his basement.
asserted
client → say → basement
He was arrested in May 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
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
'Mr. Rush never claimed they were his,' Carmichael said.
uncertain
Carmichael → arrest → bosses
Authorities say 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.
asserted
who → say → York
Investigators determined that he didn´t serve as a Navy pilot and didn´t attend either school.
asserted
he → determine → school
Rush enlisted in the Navy in 1997 and was honorably discharged from the US Navy Reserves as a lieutenant in 2015, according to the FBI affidavit.
uncertain
Rush → enlist → affidavit
This is a developing story.
asserted
This → develop → ?