By Matthew Russell Lee, Patreon Worth St Video
SDNY COURTHOUSE, Dec 14 - In the U.S. District Court for the Southern District of New York, an arraignment was held by Magistrate Judge Sarah L. Cave former FBI agent Charles McGonigal, for helping Russian oligarch Deripaska in violation of US sanctions, and money laundering.
McGonigal, who'd hired former US Attorney for the Eastern District of NY Seth duCharme, pled not guilty and was given a $500,000 personal recognisance bond bail deal. Thread below. He has also been indicted in the District for the District of Colombia.
SDNYAugust 15, 2023 guilty plea proceeding, thread here: (and video afterward here)
And below, the Nov 30 request for no jail time
McGonigal: I agreed to collect open source information about a business competitor of Oleg Deripaska, to try to put him on the US sanctions list. I knew that it was wrong. I want to thank you for treating me fairly.
[His voice breaks]
Plea agreement letter on Patreon here.
On November 30 McGonigal's counsel Seth DuCharme submitted partially redacted letters and a sentencing memo asking for a "non-custodial sentence" - that is, no jail time. Former FBI Thomas S. Shaughnessy recounts McGonigal "saving" an FBI field agent named Mike, no last name, "rough as a cob with a true potty mouth."
He also recounts McGonigal giving "Angry Kevin" the "Bradley Manning / Julian Assange case ('Wikileaks') and that case made Kevin's reputation." Letter on Patreon here.
On December 7, the US Attorney's Office wrote in and request a sentence of 60 months, and a $200,000 fine.
Some of the letters are touching. Sentencing was set for December 14 at 1:30 pm.
Inner City Press live tweeted it, thread:
All rise!
Judge Rearden: Both parties asked to seal portions of their submissions. Mr. DuCharme do you object to this sealing? McGonigal's lawyer (and former EDNY US Attorney) Seth DuCharme: No objection, your Honor.
Judge Rearden: It is indicated that there are no identifiable victims... Any objections to the Pre Sentencing Report? DuCharme: No. AUSA: No. Judge: Offense level 25, guideline of 57 to 60 months.
Assistant US Attorney: When Charlie McGonigal became chief here in NY, it should have been the crowning achievement of his career. But he wasn't content to earn over $200,000, and more after retirement. Instead as early as 2017 he abused his position
AUSA: He sold his credentials, finding people to pay him. He dealt with a Russian diplomat, a Russian intelligence officer working for Deripaska, a Putin henchman. Mr. McGonigal knew Deripaska was sanctioned before Deripaska knew it
AUSA: In 2021 he took money from Deripaska to investigate 1 of the oligarch's rivals. McGonigal had an expensive apartment - this was a betrayal. Sanctions are important. Russia's attach on Ukraine has been found by the last 3 Presidents to be a national emergency
AUSA: What McGonigal did undermined the legitimacy of sanctions. We caught him. He deserves the top of the Guidelines [5 years]. His previous work should not be given credit - it's what allowed him to do the crime.
AUSA: He told the Atlantic Council that when position are for sale, it undermines the rule of law. Then look what he did. He deserve five years. McGonigal's lawyer DuCharme: I'm not going to respond to things outside the charge here, like his post employment work
DuCharme: Look at other IEEPA cases. After he left the FBI, he met Deripaska. Representing him could have been legal. Then when he was interviewed, he stopped. He had only made $17,000. I am very sensitive to damage to America. But Potanin got sanctioned anyway
DuCharme: What he did was not that nefarious. He has special skills - you know it from the top secret submission. Helping North Korea build weapons is worse. How could Charlie do this after 22 years in the FBI? He thought it might benefit the US
DuCharme: Charlie loves the FBI. He was out before he did this. You've seen the top secret submission. After the plea we spent 7 hours with Federal agencies - I'm not going to talk about it unless you ask me about it. I couldn't bring a laptop with me
DuCharme: There is no case just like this. There are low sentences in IEEPA cases - Judge Ross once gave probation. Cabeli got 8 months, as a State Dept employee. But Charlie had 22 years at the FBI. McGonigal's 2d lawyer: After 9/11 he helped with clean up
[DuCharme cited US v Cabelly, 09-cr-278 (DDC) and US v. Sheikhzadeh, 15-cr-182 (EDNY) - defendant worked for Iran's Mission to the (corrupt) UN] McGonigal's 2d lawyer: He passed up a position with a major financial institution. He met with 7 DOJ Department.
McGonigal's 2d lawyer: This case drew media attention, Charlie has been demonized. He's been referred to as Red Charlie by prominent media figures. His family have been attacked. A White House staffer trashed Charlie's daughter (?)
DuCharme: There was a defendant who smuggled arms for China, and the judge said I'll consider your military service, gave him time served. We respect IEEPA. Mr. McGonigal will address you directly. McGonigal: My situation has been painful, for me and my family
McGonigal: I take responsibility, I am deeply sorry. There are changes I need to make. For the rest of my life [voice breaks, then quickly stabilizes] I am asking for a second chance. I have committed a felony, it causes me physical pain
McGonigal: I met with the government for seven hours. I will tend to my personal health. I have sought counseling and spiritual support. I can be a sympathetic member of society. I ask for leniency. Judge: Give me a minute to absorb what I've been hearing.
Judge: OK. Probation recommends 42 months; the prosecution wants 60 months, Mr. McGonigal no jail time at all. There are competing principles. There are national security interests this defendant endangered, for personal enrichment. The defense says, he's human
Judge Rearden: The offense was extraordinary serious and requires a significant period of incarceration. The sanctions were imposed by three different Presidential administrations. If nations such as Russia can influence sanctions, it increases the risk of war.
Judge Rearden: Mr. McGonigal knew he was violating sanctions. At the same time, I cannot discount his prior good acts. I reviewed the classified supplement, and the letters of family and friends. He has sought counseling for alcohol consumption
Judge Rearden: Mr. McGonigal, I sentence you to 50 months in prison. You may be seated.
Judge Rearden: I impose a fine of $40,000. DuCharme: We have another sentencing in DDC, could we voluntarily surrender sometime after that? Judge: Is he a candidate for RDAP, on alcohol? AUSA: I am not familiar that too much wine is enough.
DuCharme: The defendant has recognized his problems with alcohol. It would be in the collective interest he be in RDAP. [That allows for sentence reduction]
Judge: The PSR says the issue arose more than 12 months before he arrest. I do think there is precedent
Judge: On voluntary surrender? AUSA: Fine, after his sentencing in Washington DC - thirty days after that. Judge: So, Feb 26, 2024, surrender by 2 pm, after the DDC sentencing on Feb 16. Any open counts?
AUSA: We move to dismiss them.Judge: Mr. Scotten, anything more? AUSA Hagen Scotten: No, your Honor. Judge: We are adjourned.
The case is US v. McGonigal, 23-cr-16 (Rearden)
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