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Former Fed charged with Russian sanctions violations, corruption

Two sets of crimes, same guy – sanctions evasion:

Department of Justice

Office of Public Affairs


FOR IMMEDIATE RELEASE

Monday, January 23, 2023

Former Special Agent in Charge of the FBI New York Counterintelligence Division Charged with Violating U.S. Sanctions on Russia

A Russian Court and Government Interpreter Also Charged with Violating U.S. Sanctions on Russia

A former Special Agent in Charge of the FBI New York Counterintelligence Division and a former Soviet and Russian diplomat were arrested Saturday on criminal charges related to their alleged violating and conspiring to violate the International Emergency Economic Powers Act (IEEPA) and conspiring to commit money laundering and money laundering.

According to court documents, Charles F. McGonigal, 54, of New York City, and Sergey Shestakov, 69, of Morris, Connecticut, are charged in a five-count indictment unsealed today in the Southern District of New York with violating and conspiring to violate the IEEPA, and with conspiring to commit money laundering and money laundering.

According to court documents, on April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy. According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy.

McGonigal is a former Special Agent in Charge (SAC) of FBI’s Counterintelligence Division in New York who retired in 2018. While working at the FBI, McGonigal supervised and participated in investigations of Russian oligarchs, including Deripaska. Sergey Shestakov is a former Soviet and Russian diplomat who later became a U.S. citizen and a Russian interpreter for courts and government offices.

In 2021, McGonigal and Shestakov conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following their negotiations with an agent of Deripaska, McGonigal and Shestakov agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. As part of their negotiations with Deripaska’s agent, McGonigal, Shestakov and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract and using the same shell companies to send and receive payment from Deripaska.

McGonigal and Shestakov were aware that their actions violated U.S. sanctions because, among other reasons, while serving as SAC, McGonigal received then-classified information that Deripaska would be added to a list of oligarchs considered for sanctions as part of the process that led to the imposition of sanctions against Deripaska. In addition, in 2019, McGonigal and Shestakov worked on behalf of Deripaska in an unsuccessful effort to have the sanctions against Deripaska lifted. In November 2021, when FBI agents questioned Shestakov about the nature of his and McGonigal’s relationship with Deripaska’s agent, Shestakov made false statements in a recorded interview.

McGonigal and Shestakov are charged in the Southern District of New York with one count of conspiring to violate and evade U.S. sanctions, in violation of the IEEPA, one count of violating IEEPA, one count of conspiring to commit money laundering and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. Shestakov is also charged with one count of making false statements, which carries a maximum sentence of five years in prison. Shestakov and McGonigal were arrested in New York on Saturday and will make their initial court appearances this afternoon before Magistrate Judge Sarah L. Cave in Manhattan federal court.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.

The FBI is investigating the case, with valuable assistance provided by the U.S. Customs and Border Protection as well as the New York City Police Department.

Assistant U.S. Attorneys Hagen Scotten, Rebecca T. Dell and Derek Wikstrom for the Southern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Department of Justice Press Release

And corruption-related crimes:

Department of Justice

Office of Public Affairs


FOR IMMEDIATE RELEASE

Monday, January 23, 2023

Retired FBI Executive Charged with Concealing $225,000 in Cash Received from Former Intelligence Officer

Charles F. McGonigal Arrested in New York

Charles F. McGonigal, 54, a former FBI Special Agent in Charge of the New York Field Office, has been arrested on charges relating to his receipt of $225,000 in cash from an individual who had business interests in Europe and who had been an employee of a foreign intelligence service, while McGonigal was serving as Special Agent in Charge of FBI counterintelligence efforts in the New York Office. McGonigal retired from the FBI in September of 2018.

According to the nine-count indictment, unsealed today, from August 2017 and continuing through and beyond his retirement from the FBI in September 2018, McGonigal concealed from the FBI 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.  Specifically, McGonigal requested and received at least $225,000 in cash from the individual and traveled abroad with the individual and met with foreign nationals.  The individual later served as an FBI source in a criminal investigation involving foreign political lobbying over which McGonigal had official supervisory responsibility.  McGonigal is accused of engaging in other conduct in his official capacity as an FBI Special Agent in Charge that he believed would benefit the businessperson financially.

McGonigal’s initial appearance in the District of Columbia has not yet been scheduled.

McGonigal is charged with concealing material facts and with six counts of making false statements, each of which carries a maximum penalty of five years of imprisonment. McGonigal is also charged with two counts of falsification of records and documents, each of which carries a maximum penalty of 20 years of imprisonment.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.

The FBI Los Angeles Field Office is investigating the case, with significant assistance provided by the FBI Washington Field Office.

Assistant U.S. Attorneys Elizabeth Aloi and Michael Friedman for the District of Columbia and Acting Deputy Chief Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from the Justice Department’s Office of International Affairs.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Department of Justice Press Release

Links:

DOJ Press Releases – Sanctions, Corruption

Sanctions Violations Indictment

Categories: Anti-Corruption Department of Justice (DOJ) Updates Enforcement Actions Indictments and Arrests Russian Harmful Foreign Activities Sanctions Sanctions Evasion

eric9to5

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