The former CIA officer accused of stealing more than $40 million worth of gold bars and stashing them inside his northern Virginia home was ordered detained as his criminal case moves forward, a federal judge ruled on Friday.
U.S. Magistrate Judge William Fitzpatrick ordered defendant David Rush to remain in detention following a hearing in federal court in Alexandria, Virginia, deeming him a flight risk. The ruling marks the latest development in a case that has sent shock waves through the intelligence community and prompted internal fallout at the CIA. The Justice Department has described Rush as a “master manipulator” who “cannot be trusted.”
Recommended Stories
“He is in a different position than most people,” Fitzpatrick said, siding with the government’s request.
Rush, a senior CIA official who worked on one of the government’s most sensitive programs, was arrested by the FBI on May 19 after an internal CIA investigation uncovered what officials described as potential criminal misconduct.
Rush is accused of obtaining large quantities of foreign currency and hundreds of gold bars from the CIA under the guise of work-related expenses between November and March of this year, according to court filings. Investigators allege that much of the money and gold could not be accounted for during an agency review.
When FBI agents searched Rush’s home, they allegedly discovered approximately 303 gold bars worth more than $40 million, roughly $2 million in cash, and more than 30 luxury Rolex watches. Prosecutors contend he was attempting to diversify his funds into commodities that could then be traded.
Rush, who is currently being housed in solitary confinement, so far only faces one charge related to nearly $65,000 in fraudulent timesheets claiming service in the Navy Reserve.
Federal authorities have also accused Rush of falsifying his credentials when applying for employment with the CIA, including by allegedly lying about portions of his education and work history dating back to 2009, such as falsely stating he was a pilot in the Navy.
Rush’s attorney, Jessica Carmichael, argued that her client should be allowed to remain free pending trial, pointing to the single charge of public funds theft and his cooperation with the FBI during the search on his home. Prosecutors said that every gold bar he allegedly took from the CIA has been accounted for.
Details about Rush’s exact responsibilities at the agency remain largely classified. However, NBC News reported that he served as a CIA employee for roughly 17 years and most recently acted as a liaison to the Department of War for a sensitive nuclear submarine program.
The case has sparked growing scrutiny of CIA leadership. NBC News reported Thursday that several senior CIA officials were placed on administrative leave over questions surrounding their handling of Rush’s requests for money and their response to internal warning signs about his activities.
The agency also briefed lawmakers this week on the matter as congressional questions mount over how an officer accused of deceiving the agency about his background was able to rise into its senior ranks.
Following Rush’s arrest, the CIA and FBI issued a joint statement saying CIA Director John Ratcliffe referred information uncovered during an internal investigation to federal law enforcement authorities.
FBI ARRESTS CIA OFFICIAL WHO SNATCHED OVER $40 MILLION IN GOLD BARS
“The FBI is working with partners at the CIA and DOJ,” the agencies said. “As we continue to fully investigate this matter, we’re committed to following the facts, ensuring accountability, and pursuing justice in accordance with the law.”
Rush has not yet entered a plea to the charges. The case remains under seal in part, with additional proceedings expected as investigators continue examining the alleged scheme.
