ALEXANDRIA, Va.—A federal magistrate ruled on June 5 that a former CIA official accused of stealing gold and cash must stay in jail while his case plays out.
“Ms. Carmichael, as always you’ve marshalled every argument on behalf of your client,” Magistrate Judge William Fitzpatrick told Rush’s attorney.
But he said that given the scope of the case, the suspect remains too much of a flight risk to be released.
“Mr. Rush has not only the means and the motive” but is in a different position than the average citizen, he said.
Fitzpatrick ordered Rush detained, but said he would entertain a future motion to release as more facts come to light.
Attorney Jessica Carmichael had argued that the government’s case against her client was based on “vague” allegations.
She pointed out that Rush requested the gold bars and currency as part of his job, and it wasn’t clear what they would be used for.
Her client had not tried to flee, even though he knew he was under investigation, and directed FBI agents to the loot when they came to search his home.
The gold was all accounted for, and turned out to be a “non-issue” since her client hasn’t yet been charged in relation to it, she added.
The facts of the case had changed due to a closed hearing held on Friday morning, she told the court, saying the government had produced new “salacious” accusations against her client to dramatize the case in the media.
He’s essentially charged with $65,000 of time card fraud, she said.
She also said the government was trying to create “drama” by posting pictures of the gold, but admitted her client made a mistake by improperly keeping it in his home.
That “may not have been the best judgement,” she said.
Department of Justice attorney Gavin Tinsdale called Rush a “master manipulator” and liar who “simply cannot be trusted.”
The investigation revealed that Rush lied about serving as a pilot in the Navy and attending Rensselaer Polytechnic Institute.
He also pointed out that Rush’s decision to convert some of the cash he acquired into luxury watches and foreign currency showed he was trying to diversify the funds into tradeable commodities.