Former Top FBI Counterintelligence Agent Pleads Guilty to Working For Russian Oligarch

Former FBI agent Charles McGonigal arrives at Federal Court in New York City on August 15.

A former top FBI counterintelligence agent pleaded guilty to charges related to his work for notorious Russian oligarch Oleg Deripaska, changing his plea after federal prosecutors filed new, reduced charges of conspiring to violate U.S. sanctions on Russia by working for the billionaire industrialist.

The move by Charles McGonigal, made on August 15 before a federal judge in New York City, ends a prosecution that had stunned the FBI, where McGonigal had investigated Russian influence operations for years while climbing the bureau’s ranks.

The 55-year-old also still faces a separate set of foreign agent charges in Washington, D.C., related to work he did for Albanian officials.

McGonigal, who retired as head counterintelligence in the FBI's New York bureau in 2018, was originally indicted in January by a grand jury on more serious charges of money laundering and violating U.S. sanctions.

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Prosecutors alleged that McGonigal and a former Russian diplomat with whom he was associated, were paid more than $200,000 to do work for Deripaska, a wealthy Russian metals tycoon who has long been seen as a Kremlin insider. Deripaska was hit with sanctions by the U.S. Treasury Department in 2018.

U.S. authorities said McGonigal was hired to dig up negative information on Vladimir Potanin, a rival oligarch to Deripaska. McGonigal and the former diplomat, Sergei Shestakov, also worked to try and get Deripaska removed from U.S. sanctions lists.

Shestakov has pleaded not guilty to the more serious charges than had been originally filed against McGonigal.

They "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," the Justice Department said in a press release after McGonigal entered his plea.

McGonigal could receive up to five years in prison when he is sentenced in December.

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The separate case filed in Washington, D.C., by federal prosecutors centers on work McGonigal allegedly did on behalf of a former Albanian intelligence officer, for which he was paid $225,000.

McGonigal also allegedly lied to the FBI about his contacts with foreign nationals and foreign travel while he was still employed by the bureau.

Deripaska also faces charges of violating U.S. sanctions through real estate deals and a complicated scheme under which he allegedly arranged for his girlfriend to travel to the United States to give birth to two of their children.