Former FBI spy hunter sentenced to 4 years in prison

A federal judge in Manhattan on Thursday sentenced a former top FBI agent to more than four years in prison for conspiring to launder money and violating U.S. sanctions aimed at punishing a Russian oligarch linked to President Vladimir V. Putin.

The agent, Charles F. McGonigal, served as chief of counterintelligence for the Federal Bureau of Investigation in New York, a crucial and sensitive position within the U.S. intelligence community, before retiring in 2018.

In January this yearHowever, Mr. McGonigal’s reputation as a spy hunter was turned upside down when he was arrested by federal agents and two indictments were opened in New York and Washington, D.C., accusing him of taking money from the very same types of people as he. According to prosecutors, the job is to monitor.

Both charges have since resulted in guilty pleas, making Mr. McGonigal one of the highest-ranking FBI officials ever convicted of a crime.

In New York CityMr McGonigal, 55, admitted last summer to work on behalf of Oleg V. Deripaska, a Russian aluminum magnate, in violation of sanctions imposed on him in 2018.

And on Thursday, Mr. McGonigal — a Russian counterintelligence expert who ostensibly lived a mundane life in a Maryland suburb — faced a looming new reality and living situation: a federal prison, the result of a 50-month term served by judge had imposed. Jennifer H. Rearden of Federal District Court. Mr McGonigal was also fined $40,000.

Addressing the defendant, Judge Rearden said her sentence was intended to balance Mr. McGonigal’s more than two decades as a law enforcement officer with the “extremely serious” nature of his crimes, which she said endangered national security had brought.

The judge added that while Mr. McGonigal may not have intended to undermine the legitimacy of the sanctions that were crucial to efforts to punish Russia, “that is exactly what he ultimately did.”

For his part, Mr McGonigal said he deeply regretted his actions, which he said had destroyed his life and career.

“I stand before you with a deep sense of remorse,” Mr. McGonigal said wearily to Judge Rearden. He added: “I humbly ask for a second chance.”

Before that happens, though, Mr. McGonigal will face a second conviction: In September, he also pleaded guilty in federal court in Washington, where he was charged with Hiding $225,000 in payments he had received from a former Albanian intelligence officer, along with overseas trips, meetings with foreigners and other acts. He will be sentenced in this case in February.

According to sentencing documents filed by Damian Williams, the U.S. attorney for the Southern District of New York, Mr. McGonigal planned to exploit his position for financial gain even before he resigned from the FBI.

That plan came to fruition in 2021, when Mr. McGonigal agreed to investigate a rival of Mr. Deripaska — Vladimir Potanin, another Russian oligarch — in exchange for hidden payments. These illegal services were arranged through a representative of Mr. Deripaska, Yevgeny Fokin.

Mr. McGonigal’s relationship with Mr. Fokin included favors such as getting Mr. Fokin’s daughter an internship with the New York Police Department, where she received “VIP treatment,” according to Mr. Williams.

Mr McGonigal’s work on behalf of the oligarch – overshadowed by the use of shell companies and subcontractors – included seeking information about Mr Potanin’s affairs. The ultimate goal, prosecutors said, was to impose sanctions on Mr. Potanin, potentially leveling the playing field with Mr. Deripaska. But the plot unraveled within months, after the FBI seized Mr. McGonigal’s cellphone and that of another associate, Sergey Shestakov.

The unfortunate irony of a police officer becoming a lawbreaker seemed to irritate Mr. Williams.

“It is no exaggeration to say that no one knew the gravity of McGonigal’s crimes better than McGonigal himself,” the U.S. attorney wrote.

Hagan Scotten, a prosecutor in the case, echoed that sentiment in court Thursday, saying that Mr. McGonigal’s role as head of counterintelligence for the FBI in New York was “one of the most important” anti-spy jobs in the country. given the city’s position as an international hub.

“It should have been the crowning achievement of his FBI career,” Scotten said. Instead, he said, Mr. McGonigal was “not content to serve only the country that entrusted him.”

Seth DuCharme, a lawyer for Mr. McGonigal, had asked for a non-custodial sentence, arguing that his client’s actual actions were not as nefarious as the government had suggested, but undeniably criminal.

“There’s a lot of concern about what Charlie could have done,” he said, adding, “but I think we should continue to focus on what he actually did.”

Still, Mr. DuCharme – a former acting U.S. attorney – admitted the former officer made a “terrible decision,” saying “no one knows better than Charlie McGonigal” how his conviction had tarnished his years of public service.

“Charlie,” he said, “still loves the FBI.”

Michael Rothfeld contributed reporting.