A former CIA official accused of stashing millions in gold bars at his Virginia home is a "master manipulator" who lied to his neighbours about being a pilot and leveraged his "access to seniority", US prosecutors say.

Siding with the federal government, a judge ruled on Friday that David Rush, 49, was a severe flight risk with the means and motive to evade detection, and must remain in jail until his trial.

His defence pushed back on "sensational" allegations against him, arguing that some claims "sound bizarre and secretive" because the nature of intelligence work "can be bizarre and secretive".

The government also says it found millions in cash and dozens of luxury watches during its search.

At a hearing in Virginia on Friday, government lawyers said Rush "cannot be trusted" and was "fully willing and able to skirt the rules", according to the BBC's US media partner, CBS News.

Rush is a former senior executive in a US government agency in Virginia and had top secret clearance and access to classified information, court documents state.

CBS News reported he worked for the CIA, while the FBI has said it conducted the investigation and search after receiving a referral from the CIA.

Rush was charged with criminal theft of public money in a complaint filed last month and currently faces a single charge related to allegedly fraudulent time-sheets amounting to around $70,000 (£52,424).

Between November 2025 and March 2026, Rush received gold bars and foreign currency for "work-related expenses", according to court filings. But he allegedly did not document what he did with them and the CIA was unable to locate the bars.

The FBI found more than 300 gold bars worth about $40m (£29.6m) at his home last month, as well as $2m (£1.48m) in cash and more than 30 luxury watches.

Prosecutors have alleged that Rush was moving funds into commodities that could be traded, citing "strong evidence" he was trying to hide the money.

They have also alleged he fraudulently took military leave with pay after being honourably discharged from the US Navy, and that he lied about his education and military service when applying for his job. Rush is accused of falsely telling employers he had been a navy pilot.

The government says large sums of the funds it believes were stolen are still unaccounted for.

But Rush's defence lawyer Jessica Carmichael said all the gold bars were accounted for and were a "non issue", CBS reported.

She said that when the FBI searched his home, Rush told investigators about the bars, which were locked and stored in his basement, and gave them codes to access them.

Carmichael said he never claimed the gold was his and argued that the government "parading around gold bars is a flaw".

Rush has been held in solitary confinement, only allowed out for two hours a day. Carmichael argued he should be moved to home detention with an ankle monitor.

US magistrate Judge William Fitzpatrick cited Rush's professional career in deciding he was a flight risk.

"He's in a different position than most people to flee and avoid detection by law enforcement," he said.

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Ex-CIA official who hid $40m in gold bars is a 'master manipulator', prosecutors say

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