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Ex-CIA Official in $40 Million Gold Bars Case Reaches Tentative Plea Deal
ReEx-CIA Official in $40 Million Gold Bars Case Reaches Tentative Plea Deal
David J. Rush, a former CIA official accused of inflating his salary and later found with about 300 gold bars worth more than $40 million, has reached a tentative plea agreement with federal prosecutors, court records show.
A former CIA official who was found with roughly $40 million in gold bars at his home has reached a tentative plea agreement with federal prosecutors after being charged with theft for fraudulently inflating his salary, according to court records.
A federal judge on Friday extended the deadline to formally indict David J. Rush until Oct. 8, giving prosecutors and his attorney time to finalize the deal and avoid a public trial. Both parties said such a trial could involve significant litigation over classified material.
A joint court filing Thursday by the U.S. Attorney's Office for the Eastern District of Virginia and Rush's lawyer did not outline the terms of the tentative agreement. The U.S. attorney's office declined to comment Saturday, and Rush's attorney did not immediately respond to a request for comment.
Rush was charged with theft of public money in May. According to an FBI agent's affidavit filed in court, he was accused of fraudulently claiming 744 hours of military leave on his timecards after he was honorably discharged from the Navy in 2015. He was also accused of inflating his salary by falsely claiming degrees from Clemson University in South Carolina and Rensselaer Polytechnic Institute in New York.
The same affidavit revealed that investigators searched Rush's home and seized about 300 gold bars worth more than $40 million, along with about $2 million in U.S. currency and roughly 35 luxury watches. The FBI document said Rush had obtained the gold bars from the U.S. government for «work-related expenses.»
Rush's attorney has said the charge against him is not related to the gold bars, which she described as «a sensational tidbit.» A Justice Department attorney said during a June court proceeding that Rush was not supposed to have the gold bars at his home.
The case has drawn attention because of the unusual combination of a former intelligence official, a large cache of precious metals, and allegations of payroll fraud. The plea agreement, if finalized, would resolve the criminal charge without a trial that could have required the handling of sensitive government information.
The extension until Oct. 8 gives both sides additional time to complete the agreement and present it to the court. Until then, the details of the deal remain undisclosed, and it is not clear whether Rush will plead guilty to any charge or what penalties might be involved.
Federal prosecutors have not commented publicly on the specifics of the negotiations. The joint filing Thursday offered no indication of how the gold bars or other seized items would be addressed under the agreement.
The case remains pending in the Eastern District of Virginia, where the initial charge was filed. A formal indictment had been expected before the deadline was extended.
