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A former CIA official has been accused of stealing 303 gold bars worth more than $40 million from the spy agency and stashing them in his Virginia residence, according to a criminal complaint and current and former U.S. officials.
Prosecutors say David J. Rush of Virginia, described in a criminal complaint as a former senior executive with a top-secret security clearance, also misled his superiors about his education and military service, falsely claiming college degrees he did not have and $77,000 in military leave pay he wasn't entitled to.
Rush was arrested last week and charged with theft of public funds. His attorney, Jessica N. Carmichael, declined to comment.
While much about the case remains unknown, it raises questions about the efficacy of U.S. government background checks on Rush, as well as how he was allegedly able to persuade his superiors to entrust him with tens of millions of dollars in gold and large amounts of foreign currency.
Rush said the funds were intended for "work-related expenses," according to an affidavit filed in U.S. District Court for the Eastern District of Virginia.
A former U.S. official familiar with the matter, speaking on the condition of anonymity to describe an ongoing investigation, said Rush worked for the CIA's Directorate of Science and Technology, which develops high-tech tools for the agency's espionage missions.
CIA and FBI spokespeople said in a joint statement that, on May 19, the FBI "arrested an individual following a referral from the Central Intelligence Agency. After a CIA internal investigation identified potential violations of the law, CIA Director John Ratcliffe referred the information to the FBI for a law enforcement investigation."
"The FBI is working closely with our partners at the CIA and the Department of Justice as we continue to investigate this matter fully," the statement said.
The affidavit by an FBI special agent said that Rush made several requests for gold and cash between November and March. A subsequent search of his government office revealed that only a portion of the currency was in storage there. The CIA could not locate the gold bars or the rest of the currency.
The FBI executed a search warrant at Rush's house on May 18.
"During the search, FBI agents seized approximately 303 gold bars, each of which weighs approximately one kilogram. Based on the current price of gold, the estimated value of the gold exceeds $40 million," the affidavit says. The FBI also seized about $2 million in cash.
"Finally, FBI agents seized approximately 35 luxury watches, many of which were Rolex brand," the affidavit says.
Rush waived his right to a preliminary hearing. He is being held by the U.S. Marshals Service. A detention hearing is scheduled for June 5.
U.S. intelligence agency employees are supposed to be subject to rigorous background checks, including their education, previous employment, travels and personal associations.
The affidavit describes Rush as "a former Senior Executive Service level employee at a United States Government agency" who possessed a top-secret/secure-compartmented information security clearance.
According to the document, Rush allegedly misled the CIA - which he appears to have joined around 2009 - about his college degrees and military status.
Rush, the document alleges, claimed to have a bachelor's degree from Clemson University and a master's from Rensselaer Polytechnic Institute.
An FBI investigation found no record of Rush ever attending either institution, nor any evidence to support his claim that he had been a U.S. Navy pilot.
While Rush was honorably discharged from the Navy in 2015, he continued to claim he was in the Navy Reserves, the affidavit says.
"Since being honorably discharged in February 2015, RUSH has claimed 744 hours of Military Leave on his official timesheet, representing approximately $77,000 in compensation," it says.
Salvador Rizzo and Aaron Schaffer contributed to this report.
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