Judge orders pretrial detention for ex-CIA official accused of stashing $40M in gold bars at home

The seal of the Central Intelligence Agency is displayed at CIA headquarters in Langley, Va., April 13, 2016. (AP Photo/Carolyn Kaster, File)

ALEXANDRIA, Va. — A former senior CIA official accused of stealing over US$40 million worth of gold bars from the federal government and storing them in the basement of his Virginia home was ordered to remain jailed until his trial after a hearing Friday where a defence attorney accused prosecutors of smearing the official with “sensational,” irrelevant allegations.

The defendant, David J. Rush, has both the means and motive to flee while the case against him is pending, U.S. Magistrate Judge William Fitzpatrick ruled, citing Rush’s professional experience.

“He’s in a different position than most people to flee and avoid detection by law enforcement,” Fitzpatrick said.

Rush is charged with fraudulently claiming tens of thousands of dollars in compensation for military leave after he was honorably discharged from the U.S. Navy in 2015. He was arrested last month after investigators searched his home and seized more than 300 gold bars, roughly $2 million in U.S. currency and about 35 luxury watches, according to an FBI agent’s affidavit.

Rush’s attorney, Jessica Carmichael, noted that Rush isn’t charged with any crimes related to the discovery of the gold bars, which she referred to as “basically a non-issue” and “nothing more than a sensational tidbit.” She said Rush properly obtained the gold bars and kept them locked in a safe in his basement.

“Mr. Rush never claimed they were his,” she said.

Between last November and March, Rush requested and received a “significant quantity” of foreign currency and tens of millions of dollars in gold bars for ”work-related expenses,” according to the FBI affidavit. Justice Department prosecutor Gavin Tisdale said Rush wasn’t supposed to have the gold bars at his home.

“That’s the issue — his skirting of rules and regulations,” he said.

Tisdale briefly summarized the case against Rush in open court after a portion of the hearing was sealed from the public. The evidence against Rush “grows stronger by the day,” Tisdale told the magistrate.

“Mr. Rush simply cannot be trusted to abide by this court’s conditions,” he said.

Rush enlisted in the Navy in 1997 and was honorably discharged from the U.S. Navy Reserves as a lieutenant in 2015, according to the affidavit.

Authorities claim Rush lied about his education and military background on job applications, falsely claiming to be a former Navy pilot who graduated with a bachelor’s degree from Clemson University in South Carolina and a master’s degree from Rensselaer Polytechnic Institute in New York.

Investigators determined that he didn’t serve as a Navy pilot and didn’t attend either school.

Michael Kunzelman, The Associated Press