PALM BEACH, Fla. (CBS12) — A former CIA agent convicted Tuesday of defrauding the government of $194 million reportedly used the majority of the money to acquire properties in Palm Beach and Hobe Sound.
According to CBS Miami, court filings say 49-year-old David J. Rush of Virginia, a former high-ranking federal employee, directed $145 million to a holding company he controlled, and that $102 million was used to purchase four Florida properties:
Two Palm Beach homes: $21.9 million and $27 millionOne Palm Beach parcel: $13.65 millionOne Hobe Sound parcel: $40 million
Prosecutors allege Rush intended to eventually resell the properties for a profit.
How the scheme unfolded
According to the Department of Justice, Rush, of Ashburn, Virginia, pleaded guilty Tuesday, Oct. 6, to wire fraud in federal court in Alexandria, Virginia.
According to prosecutors, Rush used his senior-level government position and “Top Secret” clearance to create fictitious government authorities and obtain federal money for his own benefit.
Between November 2025 and March 2026, he directed approximately $145 million to a holding company established at his direction, according to court documents. The money was then used to purchase the properties.
The Justice Department says Rush fraudulently obtained approximately $193.6 million in government funds.
The South Florida real estate was only part of the alleged scheme.
Gold bars
Cash and gold bars recovered in search of Rush’s residence. (U.S. v. David J. Rush)
Prosecutors say Rush separately created a fake “sensitive government activity” to justify acquiring hundreds of gold bars.
On May 19, 2026, FBI agents searched Rush’s Virginia home and recovered 298 gold bars, approximately $2.1 million in cash, €104,795, and numerous luxury watches.
The gold had cost the government approximately $46 million, according to the Justice Department.
Rush has agreed to forfeit the gold bars and cash, the Florida properties, luxury watches, and two 2026 BMW Alpina vehicles as part of his plea agreement.
What’s next
Rush is scheduled to be sentenced Jan. 28, 2027.
He faces a maximum of 20 years in federal prison, along with possible restitution, forfeiture and a fine.
The Justice Department said its investigation is continuing. The Director of National Intelligence has also requested an investigation by the Intelligence Community’s inspector general.
The allegations and admissions are detailed in federal court documents filed as part of Rush’s guilty plea.