A CIA officer arrested with $40 million in gold bars allegedly created an elaborate deception to funnel government money into his personal accounts, exploiting the spy agency's own secrecy protocols to shield the scheme from scrutiny.
David Rush is accused of fabricating a classified intelligence program and using its ultra-secret status to prevent colleagues from discussing it with anyone outside a small circle. When he recruited two other CIA employees to help administer the fictional operation, one transferred millions of dollars into the fake program, investigators say. The colleagues may not have known they were part of a fraud.
The invented program was ostensibly designed to develop contingency plans for government continuity during nuclear war or other catastrophic events. But prosecutors allege Rush used a fraudulent government contract to convince a defense contractor to purchase vast quantities of gold. An FBI raid on his home in May uncovered 303 gold bars worth approximately $40 million, along with $2 million in cash and 35 luxury watches.
Rush, who joined the CIA around 2009 and worked in the Directorate of Science and Technology, falsified his credentials for years. On government job applications, he claimed to hold a degree from Clemson University, a graduate degree from Rensselaer Polytechnic Institute, and to be a Navy pilot. None of those claims were accurate, according to court documents.
He was arrested and charged with theft of public money for allegedly submitting false time sheets claiming Naval Reserve service. Prosecutors argue the fabricated program fraud itself represents far more serious criminal conduct. A federal judge ordered him held without bail this week, concluding he posed a significant flight risk.
Rush's position gave him access to sensitive intelligence about submarine programs, where he served as a Defense Department liaison. His assignment came at the request of Deputy Defense Secretary Steve Feinberg, with whom he reportedly maintained a close professional relationship over many years. Feinberg is a major Trump campaign donor and founder of the private equity firm Cerberus Capital Management. The Pentagon has denied any close relationship between the two men, stating that Feinberg never supported Rush's career advancement.
The case has exposed vulnerabilities in how the CIA and other government agencies screen personnel and protect classified information. Several senior CIA officials have been placed on leave in connection with the investigation. There is no evidence Rush was acting on behalf of a foreign government.
Rush has not yet entered a plea. His attorney declined to comment.
Author Sarah Mitchell: "The fact that one person could exploit compartmentalization rules to create a $40 million phantom program tells you the CIA's vetting and internal controls have serious gaps."
Comments