A former high-ranking FBI counterintelligence official pleaded guilty Tuesday to conspiring to violate sanctions on Russia by going to work, after he retired, for an oligarch he once investigated.
Appearing before a federal judge in New York City, Charles McGonigal, 55, said he was “deeply remorseful” for work he did in 2021 for the billionaire industrialist Oleg Deripaska.
McGonigal told the judge he accepted over $17,000 to help Deripaska collect derogatory information about another Russian oligarch who was a business competitor. Deripaska has been under U.S. sanctions since 2018 for reasons related to Russia's occupation of Crimea.
McGonigal was also trying to help Deripaska get off the sanctions list, Assistant U.S. Attorney Rebecca Dell said, and was in negotiations along with co-conspirators to receive a fee of $650,000 to $3 million to hunt for electronic files revealing hidden assets of $500 million belonging to the oligarch's business rival.
McGonigal pleaded guilty to a single count of conspiring to launder money and violate the International Emergency Economic Powers Act. He could face up to five years in prison. Judge Jennifer H. Rearden scheduled his sentencing for Dec. 14.
McGonigal, who lives in New York, is separately charged in federal court in Washington, D.C. with concealing at least $225,000 in cash he allegedly received from a former Albanian intelligence official while working for the FBI.
McGonigal was special agent in charge of the FBI’s counterintelligence division in New York from 2016 to 2018. He supervised investigations of Russian oligarchs, including Deripaska.
The U.S. District Court for the District of Columbia later affirmed the sanctions against Deripaska, finding there was evidence he had acted as an agent of Russian President Vladimir Putin.
McGonigal, who became choked up at one point as he described his crime, said Deripaska funneled the $17,500 payment he received through a bank in Cypress and a corporation in New Jersey before it was transferred into his bank account.
“This, as you can imagine, has been a painful process not only for me, but for my friends, family and loved ones,” McGonigal said. “I take full responsibility as my actions were never intended to hurt the United States, the FBI and my family and friends.”
In a release, Matthew G. Olsen, assistant attorney general of the Justice Department’s National Security Division, said, “McGonigal, by his own admission, betrayed his oath and actively concealed his illicit work at the bidding of a sanctioned Russian oligarch.”
"Today’s plea shows the Department of Justice’s resolve to pursue and dismantle the illegal networks that Russian oligarchs use to try to escape the reach of our sanctions and evade our laws,” he added.
In February, Senator Jeff Merkley (D-Ore.) and Representative Jamaal Bowman (D-N.Y. 16th District) introduced the Fair College Admissions for Students Act. The bill looks to curb the admissions advantage given to the children of alumni and donors for colleges and universities. Sen. Merkley joined Cheddar news to discuss the push behind the legislation. "My dad was a mechanic. I was applying to schools around the country. I never thought about the fact that those students who came from the most privileged backgrounds also got a special advantage in applying to college," he said. "They take up 10-25 percent of the slots at many of our universities, and so this is kind of affirmative action for those who need it least rather than a level playing field for everyone else." If enacted, the law would amend the Higher Education Act of 1965 doing away with legacy or donor status admissions for any school participating in the federal student aid program.
Nancy Daoud, a private wealth adviser for Ameriprise Financial, joins Cheddar News' Closing Bell, where she discusses what led to a sharp spike on Wall Street during Tuesday's session and what she will be watching for most closely when the Fed announces it latest policy decision on Wednesday.
Russia's economy is effectively at a standstill after it was slapped with extensive western sanctions, and now it has to make the first of four monthly interest payments on dollar bonds. It's likely the country will not be able to pay — so what happens next? Major credit ratings agencies have downgraded Russian sovereign debt, with Fitch issuing a 'C' rating and S&P Global Ratings issuing a 'CCC-' rating. Caleb Silver, Editor in Chief of Investopedia, joins Closing Bell to discuss what a Russian debt default could mean for Russia's economy, U.S. consumers who have pensions with exposure to Russian assets, and whether this could create a global financial crisis.
With the number of Ukrainians being displaced due to the Russian invasion surging, two students from Harvard took it on themselves to develop a website to help connect potential hosts with refugees seeking housing. The co-founder of the website Ukraine Takes Shelter, Marco Burstein, joined Cheddar news to discuss working together with fellow freshman Avi Schiffmann to streamline the effort to aid Ukrainian refugees. "We basically worked for three days straight developing the website, and since then the response has been pretty incredible," Burstein said.
Over three weeks ago, WNBA player Brittney Griner was arrested in Russia on drug charges. According to reports, the Star arrived at an airport near Moscow where authorities found Vape cartridges and hashish oil in her luggage. Grindr faces serious charges that could carry a possible sentence of 5-10 years in a Russian prison. Experts warn that Griner's arrest could be used as a bargaining chip. Partner at Stroock & Stroock & Lavan, Thomas Firestone, joined Cheddar to discuss more.
On a live broadcast, an employee on a Russian state news television channel held up a sign protesting propaganda about the war in Ukraine. Ruslan Deynychenko, executive director of the Ukrainian fact-checking organization StopFake, joined Cheddar News to discuss what he called the misinformation spread to the Russian people about the invasion. "They are not about informing people they are about brainwashing people," he said. "Russian government uses their media as an instrument, as a tool, of their foreign policy."
Student loan payments for millions of borrowers are set to resume on May 1st. However, signals from the Department of Education show that the date may be pushed back. Once again, it's been pushed back a few times. Initially, the Biden Administration stated loan payments would resume as the economy continues to show signs of recovery. Student Loan Expert and Author of "How to Appeal for More College Financial Aid", Mark Kantrowitz, joined Cheddar to discuss more.
