Former Special Agent in Charge of the Federal Bureau of Investigation’s Counterintelligence Division in New York, Charles McGonigal, has pled guilty to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and committing money laundering. This is in connection with his agreement in 2021 to provide services to Oleg Deripaska, a sanctioned Russian oligarch. McGonigal entered his guilty plea before U.S. District Judge Jennifer H. Rearden.
U.S. Attorney Damian Williams expressed his disappointment in McGonigal’s actions, stating that after his tenure as a high-level FBI official, McGonigal admitted to evading U.S. sanctions by providing services to a Russian oligarch. The U.S. Attorney’s Office is determined to hold accountable those who violate U.S. sanctions for their own financial gain.
Assistant Attorney General of the Justice Department’s National Security Division, Matthew G. Olsen, emphasized the severity of McGonigal’s betrayal, stating that he actively concealed his illicit work in the service of a sanctioned Russian oligarch. Olsen asserted that the Department of Justice is resolved in pursuing and dismantling illegal networks used by Russian oligarchs to evade U.S. sanctions and laws.
FBI Assistant Director in Charge James Smith emphasized the importance of economic sanctions as part of national security policy. Smith stated that sanctions evasion through fraudulent means is a serious criminal offense. By pleading guilty, McGonigal has accepted responsibility for his actions, and the FBI is committed to investigating and pursuing anyone engaged in such activity.
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According to publicly filed court documents and statements made during court proceedings, in 2014, the President issued Executive Order 13660, declaring a national emergency with respect to the situation in Ukraine. To address this emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and related regulations prohibit the making or receiving of any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
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, based on their findings that the actions of the Government of the Russian Federation with respect to Ukraine constituted an unusual and extraordinary threat to U.S. national security and foreign policy. Deripaska was sanctioned for acting or purportedly acting on behalf of a senior official of the Russian government and for operating in the energy sector of the Russian economy. The U.S. District Court for the District of Columbia affirmed these sanctions, supporting OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin.
As an FBI official, McGonigal had previously helped investigate Deripaska and other Russian oligarchs. However, in 2018, while serving as Special Agent in Charge, McGonigal received a then-classified list of Russian oligarchs with close ties to the Kremlin that were being considered for sanctions. In 2021, McGonigal conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on him in 2018. During negotiations with Deripaska’s agent, McGonigal agreed to investigate a rival Russian oligarch in exchange for concealed payments from Deripaska. McGonigal and the agent attempted to obfuscate Deripaska’s involvement by not directly naming him in electronic communications, using shell companies as counterparts in the contract, forging a signature on the contract, and using the same shell companies to send and receive payments from Deripaska.
McGonigal, 55, of New York, New York, pled guilty to one count of conspiring to violate the IEEPA and commit money laundering. This charge carries a maximum sentence of five years in prison. However, the final sentence will be determined by the judge. McGonigal is scheduled to be sentenced by Judge Rearden on December 14, 2023.
This case highlights the crucial role of enforcing economic sanctions in national security policies. It serves as a reminder that individuals who attempt to evade sanctions for personal gain will be held accountable for their actions. The Department of Justice and the FBI remain committed to ensuring that U.S. sanctions are fully and fairly applied to limit the resources of those who pose a threat to the United States and its allies.
