CIA officer pleads guilty to wire fraud after gold bars found at home

David Rush, a senior CIA officer arrested in May, pleaded guilty to wire fraud after agents found 600 lbs of gold bars and $2M in cash at his home.

Senior CIA officer admits to wire fraud after gold bars and $2M found at his home

A high-ranking CIA officer who was arrested after federal agents discovered roughly 600 pounds of gold bars stashed in his home has pleaded guilty to wire fraud, NBC News reports. David Rush also wrongly disclosed details about a secret intelligence source to a foreign official, prosecutors said Tuesday at his plea hearing in Alexandria, Virginia.

Rush admitted to a single count of wire fraud under an agreement with federal prosecutors. He has been held in custody since his arrest on 19 May. Federal agents alleged he had fabricated details about his education and military service record, deceiving the nation's top spy agency for years.

In the plea document, Rush acknowledged disclosing "certain descriptive information of a U.S. government clandestine human source" that could "endanger the safety and life of the human source and the U.S. government officers working with the source," as well as jeopardise America's "ability to recruit human sources, who rely on the U.S. government's assurance of absolute secrecy." Rush's lawyers declined to comment.

During a search of his home, investigators seized approximately 300 gold bars, along with about $2 million in U.S. currency and 35 luxury watches. Rush claimed the items were connected to official work purposes and that they had been distributed out, noting that the spy agency employs a wide range of unconventional methods in its operations.

According to federal prosecutors, Rush also fabricated a classified special access programme and told associates he needed luxury real estate in South Florida for it. He had $145 million transferred to a holding company for four luxury properties and vehicles, telling associates that senior government officials had approved the transaction — a claim prosecutors say was false.

The case triggered significant concern among lawmakers and within the CIA itself. Questions emerged about how Rush may have deceived the highest levels of government for decades and how he cleared what is considered a rigorous vetting process. The intelligence community's internal watchdog has opened a separate investigation, according to a U.S. official and a person familiar with the probe.

Rush held a senior position in the CIA's Directorate of Science and Technology, with access to the nation's most classified programmes. He worked as a liaison to the Pentagon for sensitive military programmes and had close ties with Steve Feinberg, the Defence Department's second-in-command, according to people familiar with the work who spoke to NBC News.

Until Tuesday, Rush had only been formally charged with one count of theft of public funds — accused of falsifying pay records. He had not yet been arraigned and had remained behind bars since his arrest due to concerns he might flee the country. He was placed on leave before his arrest and was eventually dismissed from the CIA.

Rush's plea agreement means that the more serious questions surrounding his alleged fabrications and his work with the Defence Department are unlikely to become public. A protective order bars lawyers from publicly releasing sensitive information related to the case, in part due to the volume of classified material involved.

U.S. District Judge Michael Nachmanoff approved the plea deal. Sentencing has been scheduled for 28 January.

The case has also drawn attention to Rush's relationship with Feinberg. The FBI reviewed video footage showing Rush and Feinberg at a residence in the Washington region linked to the federal government, according to four people familiar with the video. Feinberg has been interviewed by the FBI but has not been accused of any wrongdoing, and the bureau has stated he is not under investigation. There is no indication Feinberg was aware of Rush's alleged fabrications. A Pentagon spokesman has said the two were not close.

Source: Google News MT — Crime (en)