EXCLUSIVE: Ousted DHS counterterrorism chief sues millionaire ex over alleged sugar daddy smear campaign

FIRST ON FOX: A former high-ranking Department of Homeland Security (DHS) official who was publicly sidelined in a "sugar daddy" media firestorm is fighting back with a major defamation lawsuit, accusing her wealthy ex-boyfriend of weaponizing her gender to destroy her counterterrorism career after she rejected a marriage ultimatum.

Julia Varvaro, the 29-year-old former DHS Deputy Assistant Secretary for Counterterrorism, filed a federal complaint Monday in the Eastern District of Virginia, alleging defamation per se and defamation by implication against Robert "Bob" Bianchi, multimillionaire CEO of federal contractor SDVO Solutions.

The lawsuit accuses Bianchi, 57, of fabricating a DHS Office of Inspector General (OIG) complaint that falsely claimed Varvaro’s college education was funded by "sugar daddies" and her jewelry consisted of "trophies."

He then leaked the confidential complaint, private photos and text messages to The Daily Mail to ignite a tabloid scandal, according to the suit.

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The lawsuit specifically targets "defamation by implication," accusing Bianchi of strategically manipulating intimate text messages to frame their age-gap relationship as a transactional "sugar baby" arrangement.

Attorneys argue a leaked text message exchange where Bianchi teased, "Don’t f— with Daddy on fashion," and Varvaro replied, "Daddy knows all," was lighthearted banter about their age difference — not evidence of sex work.

The lawsuit also addresses Apple Cash transfers that Bianchi framed as "consideration for sex," noting the payments were standard financial flows of a committed relationship.

In one private text exchange, when Bianchi suffered from kidney stones in Europe and Varvaro allegedly covered his emergency medical bills, screenshots included in the suit show he texted her, "I'm sorry lover ... Thanks for your help today. I was struggling," to which Varvaro replied, "It's okay lover as long as you are good is the only thing that matters ... Whatever you need I will figure out as long as you're good."

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Later, after she drove him through snowy roads, screenshots show Bianchi messaged her: "I love you Julia. Thanks for being You," and gave her his home keycode, texting, "I’m yours lover... you are always welcome, any time or day."

Bianchi also frequently messaged her support, writing, "I'm proud of the work you do. You're making a difference," and expressed his gratitude after introducing her to his children: "Thanks for a nice evening. I appreciate you meeting all my kids... I love you."

However, attorneys claim the tone shifted during a historic 76-day government shutdown in February, when Varvaro was furloughed.

The lawsuit alleges that when she planned to take a temporary bartending job to pay rent, Bianchi insisted she come to him for the funds instead. But when she accepted, Bianchi used her financial vulnerability as leverage for control.

In another exchange, he purportedly texted her: "I told you I am not paying your bills until we are engaged."

Varvaro said she refused the ultimatum, ended the relationship, and told him she did not need "an ATM."

In an exclusive interview with Fox News Digital, Varvaro’s attorney, Vel Freedman, described the fallout of the subsequent media controversy as "devastating."

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Freedman revealed Varvaro has been "terribly" impacted, suffering public humiliation, losing her position and seeking therapy under the care of physicians.

He also highlighted the unique weaponization of gender in the alleged smear campaign, noting that Bianchi's allegations were tailored to be "extraordinarily devastating to her career and her reputation... in a way that is sort of unique to being a woman."

The legal battle flips the narrative from April 22, when the media initially reported she was ousted. An anonymous complainant, now identified as Bianchi, told The Daily Mail he spent $40,000 on Varvaro, that she used drugs, and had a dating profile on Seeking — a website that markets itself as "a space where love and luxury meet."

Varvaro maintains she met Bianchi on Hinge, a separate dating app that uses a Nobel-Prize-winning algorithm to learn users' "type," according to the company.

Once his identity was unmasked by the press, however, attorneys said Bianchi recanted, telling People Magazine their relationship was actually "brief and personal" and "not a 'sugar' relationship."

Despite his retraction, Varvaro was terminated from DHS and had her employment offer as a CIA targeting officer rescinded.

It is unclear what specific concerns or infractions prompted Varvaro's dismissal.

The CIA, DHS, Hinge and Seeking did not immediately respond to Fox News Digital's requests for comment. Bianchi could not immediately be reached for comment.