WASHINGTON (AP) — A former senior CIA official pleaded guilty Tuesday in Virginia to a charge that he abused his position and government funds to enrich himself by acquiring Florida real estate and hundreds of gold bars worth over $40 million, according to court records.
David J. Rush fabricated a “highly classified” government program to justify the acquisition of luxury property in south Florida that he intended to resell for personal profit, according to a court filing. Rush separately concocted a bogus “sensitive government activity" to obtain the gold bars, the filing says.
Rush's fraudulent conduct cost the federal government approximately $194 million in total losses, according to the Justice Department. The losses included over $1.8 million in privately charted flights that Rush authorized for personal use at the government's expense.
Under questioning from investigators, Rush admitted that he provided a foreign government official with information about the identity of a secret source for the U.S. government, a new court filing says. The filing doesn't specify which country the foreign official represented.
Prosecutors also accuse Rush of lying to colleagues and government contractors about his military and academic credentials and the fake program that he invented, falsely claiming it was authorized by high-ranking U.S. officials.
“Rush used his legitimate government authority and manufactured personal bona fides to create confidence in his directions,” the court filing says.
Rush, 49, of Ashburn, Virginia, pleaded guilty to one count of wire fraud, which carries a maximum prison sentence of 20 years, court records show. District Judge Michael Nachmanoff is scheduled to sentence Rush on Jan. 28 in Alexandria, Virginia.
Several months ago, Rush tried to fraudulently authorize the release of $100 million from a government contract, according to Tuesday's filing. He directed somebody else to transfer approximately $145 million to a holding company formed at his direction, then used those funds to acquire four “luxury” properties in Palm Beach and Hobe Sound, Florida, the filing says.
In previous court filings, prosecutors said Rush stashed roughly $46 million worth of gold bars from the federal government at his Virginia home. They also accused him of fraudulently claiming tens of thousands of dollars in compensation for military leave after he was honorably discharged from the U.S. Navy in 2015.
“Federal employees are entrusted with serving the American people, not themselves,” Attorney General Todd Blanche said in a statement.
CIA Director John Ratcliffe said the agency immediately referred the matter to the FBI after an internal investigation turned up evidence of Rush's crimes.
“David Rush abused his position and betrayed the public trust and should be held fully accountable for his actions," Ratcliffe said in a statement.
Rush was arrested after investigators searched his home and seized approximately 300 gold bars, roughly $2 million in U.S. currency and about 35 luxury watches, according to an FBI agent’s affidavit. A judge ordered Rush to be held without bond after his initial court appearance earlier this year.
During a hearing in June, defense attorney Jessica Carmichael said Rush wasn't charged initially with any crimes related to the discovery of the gold bars, which she referred to as “basically a nonissue” and “nothing more than a sensational tidbit.” She said her client properly obtained the gold bars and kept them locked in a safe in his basement.
“Mr. Rush never claimed they were his,” Carmichael said.
Carmichael declined to comment on Rush's guilty plea after Tuesday's hearing.
Authorities say 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. Rush enlisted in the Navy in 1997 and was honorably discharged from the U.S. Navy Reserve as a lieutenant in 2015, according to the FBI affidavit.
This image provided by U.S. Department of Justice, and contained in a court filing, shows gold bars and cash that was seized from a David J. Rush's home, during a search on May 19, 2026, in Ashburn, Va. (AP Photo/Justice Department via AP)
LOS ANGELES (AP) — An extremely wealthy Chinese immigrant and his wife amassed a brood of 21 children through a surrogacy scheme and raised them in a “house of horrors,” prosecutors alleged Tuesday.
Guojun Xuan, 66, and Silvia Zhang, 39, were arrested at their sprawling mansion in Arcadia, a city about 13 miles (20 kilometers) northeast of downtown Los Angeles.
The children suffered daily beatings from cruel nannies as the couple watched over a network of surveillance cameras and laughed, according to prosecutors. The couple allegedly recruited women across the country to serve as surrogates, promising them that they were just looking for another child to grow their family.
The couple face several counts of child abuse as well as conspiracy to commit child abuse, accessory after the fact and dissuading a witness, according to Los Angeles County District Attorney Nathan Hochman.
“This case is unprecedented. It is horrific,” he said during a morning news conference. “The physical abuse, beating and punishment that these very young children received is despicable.”
In an afternoon court appearance in nearby Pasadena, the couple pleaded not guilty and denied all allegations with a Mandarin interpreter. Prosecutors sought $100 million bail per person because of the serious nature of the charges and because they are flight risks.
The couple have over 200 personal and 70 corporate bank accounts with annual transfers of $250 million, Deputy District Attorney MacKenzie Teymouri said.
Both were said to have U.S., Mexican and Chinese passports, though investigators have not determined if they are all legitimate; prosecutors said they used fake passports to create some of the bank accounts.
Inside the couple's home, investigators found a bank statement showing more than $70 million in one account along with assets such as antique sculptures and specialty alcohol that added up to nearly $10 million, according to Teymouri.
LA County Superior Court Judge Kerry White set bail at $20 million each with home detention and a protective order against visiting their children.
Mitchell Krems, the couple's attorney, called the bail amount “absurd” for the type of charges his clients face and said Zhang's health should be taken into consideration.
Zhang, who appeared in court in a wheelchair, has a rare form of leukemia and is recovering from a bone marrow transplant, Krems said.
Fifteen children were removed from the opulent home last year after an allegation of abuse, and another six living elsewhere were also located. They ranged in age from 2 months to 13 years, with most between 1 and 3. Police believe Zhang gave birth to one or two of the children, while the rest were carried and delivered by surrogates.
Hochman said the couple set up an agency, Mark Surrogacy, that they operated from home and used to hire surrogates throughout the U.S. But prosecutors said the couple misled the women, telling some that they could not conceive and others that they only had one child and wanted one more to complete their family.
“The house could only be described as a house of horrors for these incredible young children,” Hochman said.
Zhang and Xuan were first arrested in May 2025 after a hospital reported that their 2-month-old infant had a traumatic head injury, the result of being violently shaken by a nanny, according to Arcadia police.
Police did not file charges at the time, saying they needed to complete the investigation.
Hochman said the couple set up three rooms they called learning centers, where the children spent several hours a day sitting at desks under the supervision of nannies.
Through an extensive surveillance system including motion-activated cameras, the couple watched and at times laughed as the nannies physically abused the children, including daily beatings, he said.
In one video, Xuan is shown entering a room and telling a nanny to strike a child harder, Hochman said, and in another he joins the nanny in hitting the child.
The nannies were allegedly told “not to leave any physical marks on the children,” and when police arrived to investigate in May 2025, the children were told to deny they had been beaten.
After examining the surveillance video, police issued an arrest warrant for Chunmei Li, the nanny seen hurting the 2-month-old infant. However she fled to Tijuana, Mexico, and then China.
After the children were taken into state custody, Xuan and Zhang were allowed supervised visits. During one such visit, Zhang read to a child and wrote in the book, “Tell them you're happy with me, tell them you want to come home,” lead prosecutor Teymouri said.
Krems said it was “patently false” that Xuan was involved in beating any of the children and blamed all the abuse on the nannies.
“My client, Mr. Xuan, intervened swiftly,” Krems said. “He fired the nanny, excised her from the house.”
When asked about the couple’s motivation, Hochman said that was part of the investigation, as was the parentage of each child.
Krems, Xuan’s attorney, previously told ABC7 that Xuan’s goal was to raise children who become productive adults.
“The reason he has all these children is because he wants them to contribute to society. He is not a man who is self-indulgent,” Krems said. “Some who are wealthy might spend on jewelry or cars, but he is actually spending his resources to help his children become educated.”
After Tuesday's court hearing, he said Xuan and Zhang immigrated from China to exercise their freedom and have as many children as they want.
“If they were white, if they were Elon Musk, and they weren't Chinese, they wouldn't experience this level of scrutiny,” Krems said.
Surrogacy is an arrangement in which a woman agrees to carry and deliver a child for another person or couple, often after an embryo transfer.
There is no comprehensive federal law regulating surrogacy, leaving most rules to the states.
California is considered to be surrogacy-friendly because it has clear laws governing the process. Both sides are required to have lawyers, and there must be a written, notarized contract before an embryo transfer takes place.
At least eight women came forward to say they were aggressively pursued to serve as surrogates. The women, many of them first-time surrogates, said they were given misleading or incomplete information about the couple’s family situation and intentions.
Krems denied that the couple lied to surrogates about their intentions.
The district attorney's office said a federal investigation was ongoing.
Marcelo reported from New York.
FILE - An aerial view shows the home of Silvia Zhang and Guojun Xuan on July 16, 2025, in Arcadia, Calif. (AP Photo/Jae C. Hong, File)
