By Matthew Russell Lee, Patreon Worth St Video
SDNY COURTHOUSE, Aug 15 - 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 and should appear there on January 25. Inner City Press will cover both cases.
Inner City Press covers the SDNY Mag Court(s). Related Mag Court live-tweeted thread (more on Patreon here) vlog here
January 23 McGonigal thread here
And the August 15, 2023 guilty plea proceeding, thread here: (and video afterward here)
OK - now ex-FBI McGonigal change of plea proceeding. Inner City Press has been covering the cases including the DC indictment about bribes and access to US / USUN (which haven't answered questions)
Judge Rearden's courtroom, where she heard another case at 11:30 am that Inner City Press also covered, but then locked from 11:40 to noon. Now filling back up. Lot of interest in ex-FBI - and Deripaska. Ex-EDNY US Attorney DuCharme, now for defendant, is here
All rise!
At the prosecutors' table, a lawyer from the National Security Unit. For McGonigal, DuCharme.
Judge Rearden: It is my understanding Mr. McGonigal wishes to plead guilty to an information and waive his right to indictment. Is that correct?
DuCharme: Yes.
Judge Rearden: Before Magistrate Judge Sarah Cave, you pleaded not guilty. Do you remember that? McGonigal: I do, your Honor. Judge: And now you seek to plead guilty to the S-1 information? McGonigal: Yes. [S-1 info & plea agreement, are not yet in the docket] Judge Rearden: In a few minutes I am going to ask you
Deputy: Do you swear this will be the truth, the whole truth, so help you God? McGonigal: I do. Judge Rearden: How old are you? McGonigal: 55. I have a masters in international studies. Judge: Over past 48 hours, alcohol? McGonigal: Glass of wine at 8 pm.
Judge: The superseding information charges you with one count... conspiring to violate IEEPA [sanctions] and money laundering. [The initial indictment had 5 counts: 2 sanctions counts, 2 money laundering counts, and a false statements charge]
[Programming note: the unknown in this proceeding, at least at this stage, is what the agreed sentencing guidelines in the plea agreement are, and maybe what McGonigal allocutes to, though that may just track the Superseding Information, which is not yet public]
Judge Rearden: In a few minutes I am going to ask you questions about what you did, do you understand that? McGonigal: Yes, your Honor. Rearden: Government? AUSA: Here, there were two objects of the conspiracy: violation of IEEPA... and money laundering.
Judge Rearden: You are being prosecuted for a separate offense in the District of Colombia. Do you understand that any sentencing could be consecutive? McGonigal: I do. [In DDC case McGonigal is accused of soliciting $500,000 bribe to set up US/UN meeting]
Judge Rearden: I have here a copy of the plea agreement letter dated July 14, 2023, signed by you Mr. McGonigal today, correct? McGonigal: Yes, your Honor. Judge Rearden: You and the US have agreed how the Sentencing Guidelines apply to your case...
Judge Rearden: You have agreed not to appeal any sentence below 57 to 60 months, correct? McGonigal: Yes, your Honor. Judge Rearden: The guidelines are actually 57 to 71 months. But the statutory maximum is five years or 60 months...
Judge Rearden: The agreements provides that the Office will not further prosecute Mr. McGonigal for IEEPA acts in 2021, except for tax charges... Has anyone threatened you to sign this plea agreement? McGonigal: No.
Judge Rearden: Tell me what you did. McGonigal: Thank you for finally allowing me to be heard. It has been a painful process. I appear before you to reflect on this entire situation. I am remorseful. I never intended to hurt the US, the FBI, my family and friends
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]
Judge: Let's go step by step McGonigal: The money was wired from Gazprom Bank through Cyprus then New Jersey then to me. Judge Rearden: Was it structured to conceal Mr. Deripaska? McGonigal: Yes, your Honor.
Judge Rearden: What is the government's evidence? AUSA: Records demonstrating that Oleg Deripaska was on the sanctions list, and the Mr. McGonigal attempted to get him removed from that list. He had no OFAC license to perform these services.
AUSA: There would be photos of meetings including Shestakov and Deripaska's agent in Manhattan. Money was transferred via shell companies to McGonigal. Judge Rearden: Do you plead guilty? McGonigal: I do. Judge: I accept your guilty plea. Sentencing Dec 14, 1:30
AUSA: We understand Mr. McGonigal may intend to use some classified information in his sentencing submission -- Judge Rearden: How would so do that - have the sentencing in the SCIF? DuCharme: There may be material things about the work he has done for the US
DuCharme: We'll proffer to the US what we'd include in a supplemental classified sentencing submission. Judge: Bail conditions are continued. We are adjourned.
Plea agreement letter on Patreon here.
Back on March 9, 2023, Inner City Press was there. Thread here:
OK - now again ex FBI McGonigal and co-defendant oligarch case in SDNY.
McGonigal's lawyer Seth DuCharme: We look forward to our trial. In the short term we can make motions.
Co-D Shestakov's lawyer: We'll say more in our conference this afternoon [Sealed CIPA confetence]
Now talks turns to taking Rule 15 depositions abroad. "There are foreign nationals with exculpatory information," co-D's lawyer says.
Judge: Letter update in 30 days on April 5 conference in 60 days on May 10 at 2 pm at which we'll pick a trial date.
But on May 9, counsel to co-defendant Sergey Shestakov wrote to Judge Rearden asking that "the Court set this matter down for another status conference in September or October, rather than set a trial date at this time."
At the May 10 conference, she asked for 2025. Inner City Press was there, thread:
now in US v McGonigal, his lawyer DuCharme says he's perplexed by the amount of discovery in DDC and why no CIPA
Shestakov's lawyer complains that DuCharme met with AUSA Scotten today in the SCIF, but she couldn't be there (she still can't under CIPA, no clearance). Does not want to set a trial date.
DuCharme says - twice - that he has no other trials (for now - he's ex EDNY)
Judge asks about another Deripaska case here in SDNY (that Inner City Press is also covering).
Now AUSA saying how he prosecuted the Mafia, some trials are short.
Now Shestakov's lawyer says she wants the Deripaska discovery, as an unindicted co-conspirator as she gets in a drug case. She wants trial in... 2025.
Judge: So, conference in September. For trial, hold some dates between March 1 and June 30.
Now Sheshtakov's lawyer cites case against NYPD officer for spying on Tibetans, that EDNY dropped. Hoping that happens here?
Judge: Status reports by June 2 and July 10, not the 3rd... And August 11, with conference on Sept 14 at 11:30.
On May 30, Judge Rearden issued this schedule: "Trial will commence on June 12, 2024 at 10:00 a.m. 2. Defendants' pretrial motions are due February 2, 2024, with the Government's responses due February 16, 2024, and Defendants' replies, if any, due February 23, 2024. 3. Any motions in limine or trial memoranda, as well as proposed voir dire, proposed jury instructions, and proposed verdict forms, shall be filed by May 10, 2024. Any oppositions to motions in limine or trial memoranda shall be filed by May 24, 2024. Any motions to sever are due May 10, 2024, with responses due May 24, 2024. 5. A final pretrial conference will be held on May 30, 2024. (Signed by Judge Jennifer H. Rearden on 05/30/2023)."
On August 7, this: "ORDER as to Charles McGonigal: The Court has been informed that Defendant Charles McGonigal may wish to enter a change of plea. Accordingly, on August 15, 2023 at 12:15 p.m., a plea proceeding will take place in Courtroom 12B, 500 Pearl Street, New York, New York 10007. (Change of Plea Hearing set for 8/15/2023 at 12:15 PM in Courtroom 12B, 500 Pearl Street, New York, NY 10007 before Judge Jennifer H. Rearden) (Signed by Judge Jennifer H. Rearden on 8/7/2023) (ap)."
More on Substack here
The case is US v. McGonigal, et al., 23-cr-16 (Rearden)
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