A former senior federal official has pleaded guilty to wire fraud after using fictitious classified programmes to divert about $194 million into gold bars, luxury properties, watches and BMWs.
David J. Rush, of Ashburn, Virginia, entered his plea in federal court in Alexandria. Under the agreement, he must pay at least $195.4 million in restitution, including $193.6 million in losses and $1.8 million for private charter flights charged to the government.
Rush held senior executive positions and a top-secret/sensitive compartmented information clearance at an agency referred to in court filings as “Government Agency 1”. The CIA referred the case to the FBI after an internal investigation identified potential crimes, CIA director John Ratcliffe said.
“David Rush abused his position and betrayed the public trust and should be held fully accountable for his actions,” Mr Ratcliffe said.
Attorney General Todd Blanche said: “Federal employees are entrusted with serving the American people, not themselves. 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.”
Fake programme used to buy South Florida properties
Court documents say Rush created two bogus programmes from about October 2025. One was presented as a Special Access Programme that required the purchase of luxury property in South Florida.
Because of his role, Rush was able to identify requirements and approve resources, effectively making himself the approving official. He staged briefings to give contractors access to the fictional programme and claimed the work was highly classified. One contractor was made to sign a non-disclosure agreement, while a contracting official who questioned the spending was told they had no “need to know”.
Between November 2025 and March 2026, a government contractor sent roughly $145 million to 0701 Holdings LLC, a company established at Rush’s direction that billed for consulting services.
The money was used to buy two Palm Beach homes for $21.9 million and $27 million, a $13.65 million Palm Beach plot and a $40 million property in Hobe Sound. Rush intended to resell the properties for a profit, according to the court documents.
298 gold bars found at official’s home
For the second fictitious programme, Rush told an executive at a subcontractor that a sensitive assignment involving about six people permitted the use of gold, diamonds or cryptocurrency.
The subcontractor bought 298 gold bars at a cost of $46,361,721, including fees. They were delivered in Pelican cases to a safe in Rush’s office in Loudoun County.
FBI agents found all 298 bars at Rush’s home on May 19, with serial numbers matching the subcontractor’s records. They also discovered about $2.1 million in cash, €104,795 and more than 30 watches, including several Rolexes.
Court documents say Rush also misrepresented his background to secure his position. He claimed to be a combat veteran and military pilot, and said he held a bachelor’s degree from a South Carolina university and a doctorate from a New York university. The documents say he graduated from neither institution and had never flown for the military.
Although Rush left the Navy Reserve in 2015, he allegedly claimed 392 hours of military leave from his civilian job from 2021 onwards. He also admitted that, in late 2025, he gave a foreign government official information about a US clandestine human source.
Under the agreement, Rush will forfeit the gold, cash, 35 watches, two 2026 BMW Alpina XB7s, $38.65 million seized from the company’s account and the properties in Palm Beach and on Jupiter Island.
He faces up to 20 years in prison when he is sentenced on January 28 2027. The Justice Department said the investigation is continuing, while the Director of National Intelligence has asked the Inspector General for the Intelligence Community to investigate.
