Who is Charles McGonigal? All about former FBI intelligence as he gets over 50 months in prison for working with Russian oligarch

Charles McGonigal, a former high-ranking veteran FBI official, was sentenced to 50 months in prison and a $40,000 fine on Thursday, December 14, for conspiring to violate the International Emergency Economic Powers Act.

McGonigal, who pleaded guilty in August, provided services and information to the Russian oligarch, Oleg Deripaska, who was sanctioned by the US government in 2018.

In addition, McGonigal faced charges of conspiring to launder money in connection with his associations with Deripaska. He is among the highest-ranking FBI officials to ever receive a prison sentence. The 55-year-old worked for over 20 years in the FBI. He was a Special Agent in Charge (SAC) of the New York FBI Counterintelligence Division.

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Charles McGonigal and his Russian connection

Charles McGonigal was a celebrated FBI official, having worked over 20 years in the institution and handled many high-profile cases. He has worked on cases including the WikiLeaks classified documents leak and a stopped New York City subway bombing before retiring in 2018. He also investigated former President Donald Trump's alleged ties to Russia regarding the 2016 election.

A U.S. Department of Justice report revealed that he was a "former Special Agent in Charge (SAC) of the FBI Counterintelligence Division in New York." The once-celebrated man's fall from grace can be dated back to 2014 when then-President Barack Obama issued Executive Order 13660. The order declared a "national emergency" regarding the situation in Ukraine.

Under this order, all properties of individuals determined by the U.S. Treasury Department who were deemed to be involved in the formation of actions or policies that were a threat to the "security, sovereignty, or territorial integrity" of Ukraine were blocked by the President. The order also applied to those who sponsored these determined individuals or entities in such actions. Thereby:

"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."

In 2018, during Donald Trump's presidency, Oleg Deripaska was declared a "Specially Designated National" by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). It was done in connection with the findings that the actions of Russia regarding Ukraine posed an "extraordinary" threat to US national security and foreign policy. The report recalled:

"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."

He was also later found to be an "agent of Russian President Vladimir Putin," with the support of evidence. Here is where Charles McGonigal comes into the picture, as he helped in the FBI investigations against Russian oligarchs, including Oleg Deripaska. He even supervised the investigations into the sanctions violated by these people as the SAC.

However, Charles McGonigal began forming a relationship with an agent of Oleg Deripaska with ulterior post-retirement motives in mind. He received a list of oligarchs who were facing sanctions and even met up with Deripaska in Vienna and London after his retirement. Prosecutors also stated that he even helped Deripaska meet up with a law firm to try and get his sanctions removed.

In direct violation of the sanctions imposed in 2018, McGonigal was hired by Deripaska in 2021 to dig up and provide information on a rival oligarch named Vladimir Potanin in exchange for payments. The ever-efficient Charles McGonigal recovered information regarding Potanin on the dark web with the help of a sub-contractor.

Deripaska's agent and McGonigal tried to cover up the deal and conceal Deripaska's involvement in the scheme by using a variety of tricks.

Deripaska's name wasn't mentioned in any electronic communications, shell companies were used as counterparties in the official contract, the same contract was signed with a forged signature, and the same shells were used to send and receive funds.

In November 2021, McGonigal was negotiating a $3 million deal for the files collected by him when his whole operation was caught and shut down, rather poetically, by FBI agents from the same division he used to lead.

Charles McGonigal also received $17,500 for the information that he did turn over to Deripaska. The money was laundered from a Russian Gazprom Bank through Cyprus before landing in a New Jersey business bank account. It was later shifted to McGonigal's personal account.

National Security Branch Executive Assistant Director Larissa L. Knapp was extremely displeased with the actions of Charles McGonigal. The Justice Department report quoted her as saying:

"Charles McGonigal’s conduct can be summed up in one word – betrayal. He betrayed everything he once swore to protect."

She added:

"Today’s sentencing is a message to all, no matter who they are, the FBI does not tolerate those who choose to jeopardize US National Security."

She declared that prioritizing personal gains over the oath to protect the American people and uphold the Constitution would be "prosecuted to the full extent of the law."

As stated in the introduction, McGonigal pleaded guilty in August and is all set to spend over four years in prison and rake up a $40,000 fine. He is also additionally required to forfeit the $17,500 and undergo a three-year supervised release.

Apart from all this, Charles McGonigal still faces federal charges in a separate case. He had concealed a cash payment of $225,000 that he received from an ex-Albanian intelligence officer in 2017 while working as a counterintelligence head in New York. McGonigal had also pleaded guilty to these charges, and the sentencing is set for February 2024.