Ex-federal employee pleads guilty to $194M fraud scheme

A former federal employee pleaded guilty to a scheme to defraud the federal government resulting in a loss of $194 million. 

David J. Rush, 49, worked in a senior executive-level role with a federal agency and had a top-secret security clearance. 

Rush reached that position in part, by lying about his education and military experience, according to a Department of Justice release. 

Former federal employee $194 million fraud scheme

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David J. Rush used his role to manufacture fake government authorities, including a fabricated special access program to gain federal government funds for his personal use.

Once Rush gained the money, he acquired gold bars and funneled $145 million wire transfers used to buy luxury real estate, watches, and a car. Ultimately, Rush fraudulently amassed $193,590,400 in federal government funds.  

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According to the Department of Justice, the FBI searched Rush’s home on May 19, 2026, and retrieved 298 gold bars, approximately $2,106,550 in cash, and various luxury watches. 

Rush attained the gold bars at a cost to the government of $46 million. He entered a plea agreement and agreed to forfeit the gold bars and money discovered at his home, the illegally gained properties, 30 watches, most of them Rolexes, and two 2026 BMW Alpina vehicles, one which is valued at $172,000. 

Rush’s sentencing is scheduled for Jan. 28, 2027, and he faces a maximum penalty of 20 years in prison, three years of supervised release, forfeiture, restitution, and a fine, the DOJ noted. 

The Source: Information for this story was provided by a Department of Justice release. This story was reported from Washington, D.C.