David J Rush entered the plea to one count of wire fraud during a hearing in Alexandria, Virginia, according to court records. District judge Michael Nachmanoff is scheduled to sentence him on 28 January.
Prosecutors said Rush fabricated a "highly classified" government program to justify acquiring luxury property in south Florida that he intended to resell for personal profit, and concocted a bogus "sensitive government activity" to obtain gold bars. A court filing said he used his "legitimate government authority and manufactured personal bona fides to create confidence in his directions."
Several months ago, Rush tried to fraudulently authorize the release of $100m from a government contract, according to the filing, and directed someone to transfer approximately $145m to a holding company formed at his direction. He used the funds to acquire four "luxury" properties in Palm Beach and Hobe Sound, Florida.
Rush was arrested after investigators searched his home and seized approximately 300 gold bars, roughly $2m in US currency and about 35 luxury watches, according to an FBI agent's affidavit. A judge ordered him held without bond after his initial court appearance earlier this year. Prosecutors previously said Rush stashed more than $40m worth of gold bars at his Virginia home, and accused him of fraudulently claiming tens of thousands of dollars in compensation for military leave after his honorable discharge from the US navy in 2015.
The filing also says Rush lied about his education and military background on job applications, falsely claiming to be a former navy pilot with degrees from Clemson University and Rensselaer Polytechnic Institute. Investigators determined he did not serve as a navy pilot and did not attend either school.
Defense attorney Jessica Carmichael said the gold bars were "basically a non-issue" and "nothing more than a sensational tidbit," saying Rush properly obtained them and kept them locked in a safe in his basement. "Mr Rush never claimed they were his," Carmichael said.