Former FBI Official, Russian Diplomat Charged With Violating US Sanctions on Russia
Charles McGonigal, former special agent in charge of the New York FBI counterintelligence division, and Sergey Shestakov, a Russian court interpreter and former diplomat, were charged with conspiring to commit money laundering and money laundering, the U.S. Attorney's Office for the Southern District of New York announced. The two were charged with one count of conspiring to violate the International Emergency Economic Powers Act, one count of violating the IEEPA, one count of conspiring to launder money and one count of money laundering, each carrying a maximum 20-year prison sentence. Shestakov also was charged with one count of making false statements, which has a five-year maximum prison sentence.
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While working for the FBI, McGonigal oversaw the investigations of oligarchs, including Russian oligarch Oleg Deripaska, who was sanctioned by the Treasury Department's Office of Foreign Assets Control in 2018. Shestakov worked as a Russian interpreter for courts and government offices following his time as a Russian diplomat. In 2021, McGonigal and Shestakov "conspired to provide services to Deripaska, in violation of U.S. sanctions," DOJ alleged. After negotiations with an agent of Deripaska, the defendants agreed to investigate a rival Russian oligarch in exchange for concealed payments, DOJ alleged.
McGonigal and Shestakov allegedly tried to hide the oligarch's involvement by "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 payments from Deripaska." The duo in 2019 also tried to lift the sanctions on Deripaska, and Shestakov later lied to the FBI about the nature of his relationship with McGonigal, DOJ alleged.
McGonigal and Shestakov "violated U.S. sanctions by agreeing to provide services" to Deripaska, U.S. Attorney Damian Williams said. "They both previously worked with Deripaska to attempt to have his sanctions removed, and, as public servants, they should have known better. This Office will continue to prosecute those who violate U.S. sanctions enacted in response to Russian belligerence in Ukraine in order to line their own pockets."