A former top FBI agent is facing criminal charges for alleged money laundering and violating U.S. Treasury sanctions on a Russian oligarch, prosecutors said on Monday.
Charles McGonigal, who previously served as the head of the FBI's counterintelligence division in New York, is accused of accepting and concealing money from Russian billionaire Oleg Deripaska to investigate a rival oligarch in 2021. Deripaska, a known associate of Russian president Vladimir Putin, was named in a sanctions list by the Treasury in 2018.
Also named in the indictment from the U.S. Attorney's Office in the Southern District of New York was Sergey Shestakov, a former Russian diplomat who worked as an interpreter in the federal courts.
McGonigal was arrested after touching back down at New York's John F. Kennedy airport on Saturday. He then appeared in federal court in Manhattan on Monday, where he pleaded not guilty through his lawyer to four criminal counts, including money laundering and violating sanctions, as well as conspiracy counts. Shestakov has also been charged with an additional count of making false statements.
McGonigal and Shestakov, both United States citizens, "acted on behalf of Deripaska and fraudulently used a U.S. entity to obscure their activity in violation of U.S. sanctions," FBI Assistant Director in Charge Michael J. Driscoll said in the indictment press release.
"They both previously worked with Deripaska to attempt to have his sanctions removed, and, as public servants, they should have known better," U.S. Attorney Damian Williams added.
Before retiring from the FBI in 2018, McGonigal "supervised and participated in investigations of Russian oligarchs, including Deripaska," according to the press release.
Between 1996 and 2018, he worked in Russian counter-intelligence and counter-espionage, the full indictment said and served as the Special Agent in Charge (SAC) in New York from 2016.
Around 2018, ahead of McGonigal's retirement, Shestakov introduced the serving SAC to "Agent-1," who was an "employee and agent of Deripaska," the indictment said.
Prosecutors say the electronic communications between McGonigal, Shestakov and "Agent-1" avoided referring to Deripaska by name, rather referring to him as "our friend from Vienna."
McGonigal and Shestakov allegedly attempted to have sanctions lifted against Deripaska in 2019, although this was "unsuccessful," the indictment said.
In a separate indictment, McGonigal is also facing charges in Washington, D.C. for allegedly receiving at least $225,000 in cash from a foreign intelligence operative when still working at the FBI.
In the nine-count indictment, McGonigal is accused of hiding the nature of "his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments."
This individual later became an FBI source for a criminal investigation, supervised by McGonigal, into foreign political lobbying, the indictment said.
"Covering up your contacts with foreign nationals and hiding your personal financial relationships is a gateway to corruption," said U.S. Attorney for the District of Columbia, Matthew Graves.
"McGonigal betrayed his solemn oath to the United States in exchange for personal gain and at the expense of our national security," added FBI Assistant Director in Charge Donald Alway.
Following his appearance in federal court in Manhattan, he was released on a $500,000 personal recognizance bond.
"This is obviously a distressing day for Mr. McGonigal and his family," the former FBI agent's lawyer, Seth DuCharme, said on Monday. "As you all know, Charlie's had a long distinguished career with the FBI. He served the United States for decades."
McGonigal is expected to appear in court in D.C. via videolink on Wednesday.
Before taking up the role of SAC, McGonigal worked on investigations such as the 1998 U.S. Embassies bombings in Tanzania and Kenya, TWA Flight 800 and the September 11 terror attacks.
Following the 2001 attacks, McGonigal's work focused on "pending international terrorist threats in the New York City area," the FBI said as they announced his appointment as SAC.
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Ellie Cook is a Newsweek security and defense reporter based in London, U.K. Her work focuses largely on the Russia-Ukraine ... Read more
