Ex-FBI counterintelligence official pleads guilty to conspiracy charge for helping Russian oligarch

Former FBI agent Charles McGonigal (C) arrives for a change of plea hearing at Manhattan Federal Court on August 15, 2023 in New York City. (AFP)
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Updated 16 August 2023
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Ex-FBI counterintelligence official pleads guilty to conspiracy charge for helping Russian oligarch

  • McGonigal pleaded guilty to a single count of conspiring to launder money and violate the International Emergency Economic Powers Act

NEW YORK: 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 US 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 US 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 US 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.

 


Mystery of CIA’s lost nuclear device haunts Himalayan villagers 60 years on

Updated 48 min 12 sec ago
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Mystery of CIA’s lost nuclear device haunts Himalayan villagers 60 years on

  • Plutonium-fueled spy system was meant to monitor China’s nuclear activity after 1964 atomic tests
  • Porter who took part in Nanda Devi mission warned family of ‘danger buried in snow’

NEW DELHI: Porters who helped American intelligence officers carry a nuclear spy system up the precarious slopes of Nanda Devi, India’s second-highest peak, returned home with stories that sent shockwaves through nearby villages, leaving many in fear that still holds six decades later.

A CIA team, working with India’s Intelligence Bureau, planned to install the device in the remote part of the Himalayas to monitor China, but a blizzard forced them to abandon the system before reaching the summit.

When they returned, the device was gone.

The spy system contained a large quantity of highly radioactive plutonium-238 — roughly a third of the amount used in the atomic bomb dropped by the US on the Japanese city of Nagasaki in the closing stages of the Second World War.

“The workers and porters who went with the CIA team in 1965 would tell the story of the nuclear device, and the villagers have been living in fear ever since,” said Narendra Rana from the Lata village near Nanda Devi’s peak.

His father, Dhan Singh Rana, was one of the porters who carried the device during the CIA’s mission in 1965.

“He told me there was a danger buried in the snow,” Rana said. “The villagers fear that as long as the device is buried in the snow, they are safe, but if it bursts, it will contaminate the air and water, and no one will be safe after that.”

During the Sino-Indian tensions in the 1960s, India cooperated with the US in surveillance after China conducted its first nuclear tests in 1964. The Nanda Devi mission was part of this cooperation and was classified for years. It only came under public scrutiny in 1978, when the story was broken by Outsider magazine.

The article caused an uproar in India, with lawmakers demanding the location of the nuclear device be revealed and calling for political accountability. The same year, then Prime Minister Morarji Desai set up a committee to assess whether nuclear material in the area near Nanda Devi could pollute the Ganges River, which originates there.

The Ganges is one of the world’s most crucial freshwater sources, with about 655 million people in India, Nepal, and Bangladesh depending on it for their essential needs.

The committee, chaired by prominent scientists, submitted its report a few months later, dismissing any cause for concerns, and establishing that even in the worst-case scenario of the device’s rupture, the river’s water would not be contaminated.

But for the villagers, the fear that the shell containing radioactive plutonium could break apart never goes away, and peace may only come once it is found.

Many believe the device, trapped within the glacier’s shifting ice, may have moved downhill over time.

Rana’s father told him that the device felt hot when it was carried, and he believed it might have melted its way into the glacier, remaining buried deep inside.

An imposing mass of rock and ice, Nanda Devi at 7,816 m is the second-highest mountain in India after Kangchenjunga. 

When a glacier near the mountain burst in 2021, claiming over 200 lives, scientists explained that the disaster was due to global warming, but in nearby villages the incident was initially blamed on a nuclear explosion.

“They feared the device had burst. Those rescuing people were afraid they might die from radiation,” Rana said. “If any noise is heard, if any smoke appears in the sky, we start fearing a leak from the nuclear device.”

The latent fear surfaces whenever natural disasters strike or media coverage puts the missing device back in the spotlight. Most recently, a New York Times article on the CIA mission’s 60th anniversary reignited the unease.

“The apprehensions are genuine. After 1965, Americans came twice to search for the device. The villagers accompanied them, but it could not be found, which remains a concern for the local community,” said Atul Soti, an environmentalist in Joshimath, Uttarakhand, about 50 km from Nanda Devi.

“People are worried. They have repeatedly sought answers from the government, but no clear response has been provided so far. Periodically, the villagers voice their concerns, and they need a definitive government statement on this issue.”

Despite repeated queries whenever media attention arises, Indian officials have not released detailed updates since the Desai-appointed committee submitted its findings.

“The government should issue a white paper to address people’s concerns. The white paper will make it clear about the status of the device, and whether leakage from the device could pollute the Ganges River,” Soti told Arab News.

“The government should be clear. If the government is not reacting, then it further reinforces the fear.”