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Former FBI boss arrested for money-laundering on behalf of Russian oligarch

The two men are charged with trying to assist Russian oligarch Oleg Deripaska despite the fact the United States sanctioned Deripaska

Eric Garcia
Monday 23 January 2023 13:15 EST
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Charles McGonigal
Charles McGonigal (Executive Mosaic/Potamic Officers Club)

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The former head of the FBI's New York counterintelligence division was arrested alongside a former Russian diplomat for violating sanctions against Russia, the US Department of Justice announced on Monday.

In a statement, the Department of Justice announced that Charles McGonigal and Sergey Shestakov are charged with violating and conspiring to violate the International Emergency Economic Powers Act as well as with conspiring to commit money laundering and money laundering.

The department accused Mr McGonigal and Mr Shetakov of conspiring to provide services to Russian oligarch Oleg Deripaska, despite the fact the US imposed sanctions on Mr Deripaska in 2018.

In 2022, Mr Deripaska was charged in New York with violating US sanctions.

Mr McGonigal retired from the FBI in 2018, and while he served as special agent in charge of the FBI’s Counterintelligence Division in New York, he supervised and participated in investigations into Russian oligarchs including Mr Deripaska.

The department alleged that in 2021, Mr McGonigal and Mr Shetakov conspired to commit services for Mr Deripaska that violated the sanctions imposed on him. Specifically, they agreed to investigate a rival Russian oligarch in exchange for concealed payments from Mr Deripaska.

The two worked in negotiation with an agent of Mr Deripaska and attempted to conceal his involvement by not naming him in electronic communication and used shell companies as counterparties in the contract that outlined the services. They also used a forged signature on the contract so they could receive payments.

The department alleged that Mr McGonigal and Mr Shestakov would have known about the sanctions since when he was the special agent in charge, Mr McGonigal received then-classified information that Mr Deripaska would be added to the list of oligarchs to be considered for sanctions.

Mr McGonigal and Mr Shestakov also attempted to have the sanctions on Mr Deripaska lifted. In 2021, when FBI agents questioned Mr Shestakov, he made a number of false statements in a recorded interview, the department said in a statement.

The two men are charged in the Southern District of New York on one count of conspiring to violate and evade US sanctions, in violation of the International Emergency Economic Powers Act, one count of violating the IEEPA, one county of conspiring to commit money laundering and one count of money laundering. Each of the charges carries a minimum sentence of 20 years in prison. Both men were arrested on Saturday.

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