Kathmandu. A former CIA officer who was arrested hiding hundreds of gold biscuits in his home has now confessed to defrauding the US government of about $200 million, or about Rs 31 billion. Fake deals and real estate agreements were used to organize this big scam.
Under the agreement, David Rush, 49, will have to pay restitution to the U.S. government and surrender luxury homes, cars, watches and other property related to the crime. Rush also admitted to providing classified information to a foreign government. Which prosecutors say could cause “serious harm” to national security. “The defendant will plead guilty and plead guilty,” prosecutors said in court documents, citing the terms of the agreement. ’
BC contacted Rush’s lawyer but he declined to comment. Rush was initially charged with stealing government funds but has now pleaded guilty to wire fraud. At the time of his arrest, 298 gold biscuits were recovered during a raid on his home. Rush said he received the gold for “work-related expenses”.
Court documents related to the deal have revealed some new details about the case. Rush provided information to a foreign official about the existence and identity of a “confidential human source.” Prosecutors said in the documents, “Disclosure of such information could endanger the safety and lives of that human resource and the U.S. government officials who work with him.” It could also affect the U.S. government’s ability to recruit such human resources. ’
In a press release, CIA Director John Ratcliffe said Rush “abused his position and betrayed the public trust. He must be fully accountable for his actions.” ’
According to FBI investigators, between November 2025 and March 2026, Rush repeatedly demanded large sums of foreign currency and millions of dollars worth of gold biscuits for “work-related expenses.” According to court filings detailing the deal, Rush set up a highly secretive program to purchase luxury homes in South Florida. He later intended to sell these properties for personal gain.
The documents state that Rush “practically acted as an approving official.” That allowed him to spend large sums of money from the U.S. government without effective oversight. He then used “fraudulently obtained” government funds to purchase luxury properties in South Florida. According to court documents, the scam involved hiring an interior designer for a property and purchasing $40,000 worth of kitchen appliances.
The wire fraud charges relate to a $45 million transfer he made in January 2026. The agreement also states that Rush “provided top-secret information to an official of a foreign government.” He was not authorized to receive it and did not need it. ’
In addition to the gold biscuits, Rush was also found with $20 in cash and 35 luxury watches. Prosecutors said Rush was converting the money into easily tradable items. “There is strong evidence that he was trying to hide the money,” they said. ’
Under the agreement, Rush will also have to surrender these watches and two BMW cars to the government. He will also have to return $2 million in cash and about $39 million confiscated from his bank account.
A federal court judge will determine his sentence at a later date. The maximum sentence in the case is 20 years in prison. However, prosecutors have said the sentence could be increased under federal law.
In June, U.S. Magistrate Judge William Fitzpatrick cited Rush’s professional career, saying he was at risk of escape and ordered him to be held in jail until his trial. He could have easily evade the attention of law enforcement agencies.
Court records do not provide much information about Rush’s work for the CIA. They describe him as a former senior official at a U.S. government agency based in Virginia. Who had access to top-secret security clearances and classified information. –from the BBC
