Deputy Defense Secretary Steve Feinberg is facing mounting scrutiny over his denials of a years-long relationship with David Rush, the former CIA officer arrested in May after federal agents found 303 gold bars, $2 million in cash and 35 luxury watches stashed at his home, according to a new report.
Feinberg, a 66-year-old former private equity executive who left Cerberus Capital Management to become the Pentagon's No. 2 official in March 2025, has publicly insisted that he barely knew Rush, but NBC News reported suggests his ties are more extensive than the Pentagon acknowledges.
Pentagon spokesperson Sean Parnell said "the insinuations of a close professional relationship of any kind between Deputy Secretary Feinberg and Mr. Rush, peddled by anonymous sources, are completely false and embellished," adding that Feinberg "never supported Mr. Rush's career at any point in his life, nor did he endorse Mr. Rush for any career position."
NBC reported that Feinberg and Rush first connected years ago through the CIA's Directorate of Science and Technology, when Feinberg chaired the President's Intelligence Advisory Board during Trump's first term.
After Feinberg rejoined government in 2025, he recommended Rush for a sensitive role as the CIA's liaison to the Pentagon on nuclear submarine programs, and later contacted senior CIA officials to praise Rush's performance and propose expanding their collaboration, according to people familiar with the matter.
FBI investigators reviewing footage tied to the Rush case reportedly found video showing Feinberg at a government-affiliated residence used by Rush, with details of that footage relayed to lawmakers in a closed-door congressional briefing.
The FBI's public statements on the matter have shifted after initially saying it had not reviewed or was not aware of any surveillance footage capturing Feinberg, but after being pressed for clarification, the bureau said it "stands by" its earlier statement, "including the part about footage capturing Mr. Feinberg."
CIA officials also directly informed Feinberg that Rush was under federal investigation shortly before Rush was placed on leave and then arrested on May 19. The FBI has since interviewed Feinberg, though it maintains he is not under investigation and has not been accused of wrongdoing.
Rush, who spent roughly 17 years at the CIA and rose to the agency's Senior Executive Service, is accused of misrepresenting his academic record and military service — including fabricating a stint as a fighter pilot — for nearly two decades while holding top-secret clearance.
Prosecutors allege he invented a fake special-access program to siphon millions in government funds for personal use. He was charged with theft of public funds and has not entered a plea.
President Donald Trump has been briefed on the Rush case and is aware of Feinberg's history with him, according to people familiar with the matter, though the White House has referred questions on the matter to the Pentagon.
Feinberg has reportedly clashed with Defense Secretary Pete Hegseth, whose camera-ready style contrasts with his deputy's behind-the-scenes profile, although both men downplayed their differences to NBC News.
“I have enormous respect for the secretary, for his leadership, and for the work he is doing to transform this Department," Feinberg said in a statement. "I am proud to serve under his leadership.”
The controversy adds to a growing list of conflict-of-interest questions swirling around Feinberg, who also faces scrutiny over munitions shortfalls tied to the war with Iran and his financial ties to Cerberus, his former firm, since joining the administration.