Former CIA Employee Accused of Running Bogus Intelligence Scheme

(MENAFN) A former officer of the CIA has been taken into custody after allegedly misappropriating approximately $40 million in gold bars through a fabricated intelligence initiative that reportedly deceived government defense contractors into financing the operation. The allegations were detailed Friday by The Washington Post.

David Rush was detained last month after investigators discovered 303 gold bars at his residence. Authorities allege that he acquired the assets by establishing what is known as a "black box" spy program, described as a "highly classified intelligence program ... for the most secret intelligence operations," according to individuals familiar with the inquiry who spoke to The Washington Post.

According to the report, Rush allegedly utilized the fictitious intelligence project as a "conduit to funnel millions of dollars for his personal use." Prosecutors contend that he recruited two associates to assist in executing the fraudulent undertaking, "effectively cultivating them as perhaps unwitting accomplices and preventing them from talking to others about it."

Sources cited by The Washington Post stated, "He persuaded one of them to transfer millions of dollars to the program via a government contract that was also fraudulent." The sources further added, "He made up a contract."

Rush, who previously served in the CIA’s Directorate of Science and Technology, has been charged with one count of theft of public funds as part of the federal criminal investigation. He has not entered a plea regarding the accusation. During a detention hearing held Friday in a federal court in Virginia, a judge determined that Rush would remain behind bars until his next court appearance, citing concerns that he presents a substantial flight risk.

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