OVERVIEW
MANAGEMENT
PERFORMANCE
POSSIBILITIES
CAPITALS
ACTIVITIES
ACTORS
BURGESS
|
GRAND CORRUPTION
A FORMER FBI OFFICIAL INDICTED Former senior FBI official accused of working for Russian he investigated ... Charles McGonigal, a former counterintelligence chief, is charged with money laundering and other counts connected to oligarch Oleg Deripaska 
Russian oligarch Oleg Deripaska attends a meeting of Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan outside St. Petersburg in 2016. (Alexander Zemlianichenko/AP) Original article: https://www.washingtonpost.com/national-security/2023/01/23/mcgonigal-deripaska-indictment-fbi/ Peter Burgess COMMENTARY Peter Burgess | ||
National Security
Foreign Policy
Intelligence
Justice
Immigration
Military
Former senior FBI official accused of working for Russian he investigated
Charles McGonigal, a former counterintelligence chief, is charged with money laundering and other counts connected to oligarch Oleg Deripaska
Written by Shayna Jacobs, Spencer S. Hsu and Devlin Barrett
Published January 23, 2023 at 12:56 p.m. EST ... Updated January 23, 2023 at 3:31 p.m. EST
NEW YORK — The former head of FBI counterintelligence in New York has been charged in two separate indictments that accuse him of taking secret cash payments of more than $225,000 while overseeing highly sensitive cases, and allegedly breaking the law by trying to get Russian billionaire Oleg Deripaska removed from a U.S. sanctions list, officials said Monday.
Charles McGonigal, 54, who retired from the FBI in September 2018, was indicted in federal court in Manhattan on money laundering, violating U.S. sanctions and other charges in connection to his alleged ties to Deripaska, an ally of Russian President Vladimir Putin. In his role at the FBI, McGonigal had been tasked with investigating Deripaska, whose own indictment on sanctions-violation charges was unsealed in September.
Separately, McGonigal was accused in a nine-count indictment in federal court in Washington of hiding his receipt of $225,000 from a former Albanian intelligence agent living in New Jersey. McGonigal was also accused of hiding foreign travel and contacts with senior leaders in countries including Albania, Kosovo and Bosnia where the former Albanian agent had business interests.
McGonigal’s alleged involvement with Deripaska may impact a significant push by the Justice Department to hit wealthy Russians with economic sanctions for conducting business in the United States, an effort that accelerated last year with Putin’s invasion of Ukraine.
The twin indictments are also a black eye for the FBI, alleging that one of its most senior and trusted intelligence officials was taking secret cash payments and undermining the bureau’s overall intelligence-gathering mission.
Through his lawyer, McGonigal pleaded not guilty at a brief court appearance Monday. The lawyer, Seth DuCharme, told journalists that his client 'served the United States for decades in positions of public trust and leadership, so this is a distressing day for him, but we’re going to litigate the case in the courtroom.'
Skepticism before a search: Inside the FBI's Mar-a-Lago documents investigation
Prosecutors alleged that from at least August 2017 and beyond his retirement from the FBI, McGonigal failed to disclose to the FBI his relationship with the former Albanian security official, described as “Person A” in charging papers. He also allegedly failed to disclose that he had an “ongoing relationship with the Prime Minister of Albania,” the indictment said. Since 2013, Edi Rama has served as the prime minister of that country.
In late 2017, authorities charge, McGonigal received packages of cash totaling $225,000 from Person A — the first time, in a parked car outside a New York City restaurant, the next two times at the person’s New Jersey home. According to the indictment, McGonigal “indicated to Person A that the money would be paid back.”
Months later, at McGonigal’s urging, the FBI opened an investigation into an American lobbyist for an Albanian political party that is a rival of Prime Minister Rama, an investigation that used Person A as a source of information, authorities said.
Read the Washington, D.C. indictment of Charles McGonigal
Current and former U.S. officials who know and have worked with McGonigal said they were shocked by the indictments. As a senior FBI counterintelligence official, McGonigal had access to an extraordinary amount of sensitive information, potentially including investigations of foreign spies or U.S. citizens suspected of working on behalf of foreign governments, these people said, speaking on the condition of anonymity because of the sensitivity of the work McGonigal did. One former official said that McGonigal had worked with the CIA on counterintelligence matters.
According to the New York indictment, a law firm retained McGonigal to work as a consultant and investigator on the effort to get Deripaska removed from the sanctions list. He was listed as a consultant and arranged for $25,000 monthly payments to be sent to an account controlled by another person, a government interpreter who was a former Russian diplomat. The interpreter, Sergey Shestakov, was also charged.
McGonigal’s FBI role gave him access to classified information including a then-secret list of Russian prospects for sanctioning by the Office of Foreign Assets Control, the Justice Department said. That list included Deripaska before the sanctions were actually imposed.
The Russian billionaire next door: Putin ally is tied to one of D.C.'s swankiest mansions
Manhattan U.S. Attorney Damian Williams said in a statement that McGonigal and Shestakov “should have known better” given their experience in government service. Shestakov also was expected to appear in federal court in New York Monday afternoon.
U.S. Attorney Matthew M. Graves of D.C. called the alleged coverup of foreign contacts and financial relationships a “gateway to corruption” and credited the FBI with its handling of the “delicate and difficult” investigation of a former senior assistant director.
“McGonigal is alleged to have committed the very violations he swore to investigate while he purported to lead a workforce of FBI employees who spend their careers protecting secrets and holding foreign adversaries accountable,” said FBI Los Angeles Field Office Director Donald Alway, who announced the charges along with Graves and the leaders of the Washington FBI and Justice Department National Security Division.
McGonigal faces a statutory maximum sentence of 20 years in prison on the two D.C. counts of falsification of records and documents, and up to five years in prison for each of seven counts of concealing material facts or making false statements. The most serious charge in the New York indictment also carries a maximum possible sentence of 20 years in prison.
Read the New York indictment of former senior FBI official Charles McGonigal
McGonigal joined the FBI in 1996, working in New York, Washington, Baltimore and Cleveland. Along the way, he was involved in some of the most sensitive and high-profile intelligence cases in the U.S. government, including the conviction of former National Security Adviser Samuel Berger for knowingly removing classified documents from the National Archives. In 2010, he was tapped to lead the task force probing the anti-secrecy group WikiLeaks.
Deripaska has been a focus of FBI investigative work for many years. In 2021, FBI agents searched two homes linked to him, one in Washington and the other in New York. At the time, a spokeswoman for the aluminum tycoon said the properties were owned by his relatives.
A politically connected billionaire whose name came up repeatedly in recent U.S. investigations involving Russia and the 2016 presidential campaign of Donald Trump, Deripaska did business for years with Paul Manafort, whose tenure as Trump’s campaign chairman became an intense focus of FBI investigations.
Manafort and Deripaska have both confirmed they had a business relationship in which Manafort was paid as an investment consultant. In 2014, Deripaska accused Manafort in a Cayman Islands court of taking nearly $19 million intended for investments without accounting for how it was used.
Hsu and Barrett reported from Washington. Shane Harris and Rosalind S. Helderman contributed to this report. This is a developing story. It will be updated.
By Shayna Jacobs ... Shayna Jacobs is a federal courts and law enforcement reporter on the national security team at The Washington Post, where she covers the Southern and Eastern districts of New York.
By Spencer Hsu ... Spencer S. Hsu is an investigative reporter, two-time Pulitzer finalist and national Emmy Award nominee. Hsu has covered homeland security, immigration, Virginia politics and Congress.
By Devlin Barrett ... Devlin Barrett writes about the FBI and the Justice Department, and is the author of 'October Surprise: How the FBI Tried to Save Itself and Crashed an Election.' He was part of reporting teams that won Pulitzer Prizes in 2018 and 2022. In 2017 he was a co-finalist for the Pulitzer for Feature Writing and the Pulitzer for International Reporting.
|
| The text being discussed is available at | https://www.washingtonpost.com/national-security/2023/01/23/mcgonigal-deripaska-indictment-fbi/ and |