Former Special Agent In Charge Of The New York FBI Counterintelligence Division Sentenced To 50 Months In Prison For Conspiring To Violate U.S. Sanctions On Russia

Press Release Former Special Agent In Charge Of The New York FBI Counterintelligence Division Sentenced To 50 Months In Prison For Conspiring To Violate U.S. Sanctions On Russia Thursday, December 14, 2023 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the FBI’s Counterintelligence Division in New York, was sentenced by U.S. District Judge Jennifer H. Rearden to 50 months in prison for conspiring to violate the International Emergency Economic Powers Act and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch. U.S. Attorney Damian Williams said: “Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business. Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent. Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.” Assistant Director in Charge James Smith said: “Charles McGonigal was justly punished today for knowingly aiding the agents of foreign adversaries who targeted the United States through his fraud and deception to satisfy his own greed. The FBI is determined to ensure any individual who commits federal crimes – even a former FBI Special Agent in Charge – is held accountable to face the consequences. This sentence marks not only an important outcome by the U.S. justice system, but also reflects the dedication of the men and women of the FBI to investigate crimes, regardless of who commits them.” Assistant Attorney General Matthew G. Olsen said: “Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws. Today's sentence holds him accountable for this betrayal and demonstrates this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.” According to publicly filed court documents and statements made in court proceedings: In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national 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 regulations issued pursuant to it prohibit providing or receiving 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 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. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence. As an FBI official, MCGONIGAL helped investigate Deripaska and other Russian oligarchs. As an SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI. In 2021, MCGONIGAL conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, MCGONIGAL 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 hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division MCGONIGAL used to lead foiled his scheme after only a few months of operation. * * * In addition to the prison sentence, MCGONIGAL, 55, of New York, New York, was ordered to pay a fine of $40,000, to forfeit $17,500, and sentenced to three years of supervised release. Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department. The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section. Contact Nicholas Biase (212) 637-2600 Updated December 15, 2023 Topic National Security Component USAO - New York, Southern Press Release Number: 23-431

Press Release Former Special Agent In Charge Of The New York FBI Counterintelligence Division Sentenced To 50 Months In Prison For Conspiring To Violate U.S. Sanctions On Russia Thursday, December 14, 2023 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the FBI’s Counterintelligence Division in New York, was sentenced by U.S. District Judge Jennifer H. Rearden to 50 months in prison for conspiring to violate the International Emergency Economic Powers Act and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch. U.S. Attorney Damian Williams said: “Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business. Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent. Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.” Assistant Director in Charge James Smith said: “Charles McGonigal was justly punished today for knowingly aiding the agents of foreign adversaries who targeted the United States through his fraud and deception to satisfy his own greed. The FBI is determined to ensure any individual who commits federal crimes – even a former FBI Special Agent in Charge – is held accountable to face the consequences. This sentence marks not only an important outcome by the U.S. justice system, but also reflects the dedication of the men and women of the FBI to investigate crimes, regardless of who commits them.” Assistant Attorney General Matthew G. Olsen said: “Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws. Today's sentence holds him accountable for this betrayal and demonstrates this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.” According to publicly filed court documents and statements made in court proceedings: In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national 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 regulations issued pursuant to it prohibit providing or receiving 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 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. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence. As an FBI official, MCGONIGAL helped investigate Deripaska and other Russian oligarchs. As an SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI. In 2021, MCGONIGAL conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, MCGONIGAL 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 hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division MCGONIGAL used to lead foiled his scheme after only a few months of operation. * * * In addition to the prison sentence, MCGONIGAL, 55, of New York, New York, was ordered to pay a fine of $40,000, to forfeit $17,500, and sentenced to three years of supervised release. Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department. The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section. Contact Nicholas Biase (212) 637-2600 Updated December 15, 2023 Topic National Security Component USAO - New York, Southern Press Release Number: 23-431