The CIA has placed several senior officials on administrative leave over their handling of a high-ranking officer accused of stashing $40 million in gold bars at his home, according to three people familiar with the decisions. The move signals deepening fallout from a case that has unsettled lawmakers and raised pointed questions about how one of the nation’s most secretive agencies allowed an alleged fraudster into its upper ranks.

The Officer at the Center

David Rush, a senior CIA officer who worked on one of the most sensitive programs in the U.S. government, was arrested in Virginia on May 19. He stands accused of lying about his work experience and education, and is scheduled to appear in court Friday.

According to court documents, Rush filed fraudulent timesheets by falsely claiming membership in the Navy Reserve. The filings also allege that he requested and received a substantial amount of foreign currency and gold bars from the CIA, ostensibly for work-related expenses, much of which the agency later could not account for during a review.

A Striking Discovery

The scale of what investigators found at Rush’s home is hard to overstate. When FBI agents searched the property last month, they recovered roughly 303 gold bars, $2 million in cash, and more than 30 luxury watches, according to a court affidavit.

Rush had been a CIA employee for about 17 years. Most recently, he served as a liaison to the Defense Department for a sensitive nuclear submarine program, an assignment that has drawn particular scrutiny given the secrecy involved.

Why Senior Officials Are Facing Consequences

The agency’s decision to sideline several senior officials centers on how they managed Rush’s requests for money, as well as early internal warnings that those requests may not have been a legitimate part of his work. The people familiar with the matter did not know exactly how many officials were affected or precisely when they were placed on leave.

A CIA spokesperson declined to comment, and Rush’s attorney also offered no comment.

Mounting Pressure From Lawmakers

The case has gained momentum as new details have surfaced, rattling members of Congress who want to understand how someone accused of fabricating his credentials rose so high within an agency entrusted with the country’s most guarded secrets. On Wednesday, officials from the CIA and other federal departments briefed lawmakers on the matter.

A Disputed Connection

One thread of the story involves Rush’s reported ties to the Pentagon. Some accounts suggested he received his nuclear submarine assignment at the request of Defense Secretary Steve Feinberg, with whom he was said to have a close professional relationship developed over the years. Feinberg founded the private equity firm Cerberus Capital Management.

The Pentagon has firmly rejected that characterization. Chief Pentagon spokesman Sean Parnell called it completely false that the two men had any kind of close relationship, stating that Feinberg never supported Rush’s career or endorsed him for any position. Feinberg has not been accused of any wrongdoing.

What Happens Now

For its part, the CIA has said an internal investigation identified potential violations of the law by Rush, prompting a referral to the FBI. As Rush prepares to face the court and has yet to enter a plea, the agency confronts uncomfortable questions of its own. The decision to place senior officials on leave suggests the inquiry is reaching beyond a single rogue employee and into the oversight failures that may have allowed the alleged scheme to unfold for as long as it did.