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Monday, January 23, 2023
Third Avenue Business Improvement District - NYC Small Business Opportunity Loan Fund Launched
MAYOR ADAMS, SBS COMMISSIONER KIM ANNOUNCE OPENING OF APPLICATIONS FOR HISTORIC $75M “OPPORTUNITY FUND” TO HELP SMALL BUSINESSES LEAD PANDEMIC RECOVERY
Largest-Ever Public-Private Fund for Small Businesses Throughout Five Boroughs Breaks Down Historic Barriers to Financing
Partnership with Goldman Sachs, Mastercard, Community Reinvestment Fund, CDFIs Delivers on Key Pillar of Mayor Adams’ “Blueprint for Economic Recovery”
New York City Mayor Eric Adams and New York City Department of Small Business Services (SBS) Commissioner Kevin D. Kim today announced the groundbreaking creation of the $75 million NYC Small Business Opportunity Fund, the largest public-private loan fund directed at small businesses in the city’s history.
Approximately 1,500 local businesses will be served by the fund — with loans up to $250,000 at a market-leading rate of 4 percent — unleashing unprecedented resources at a critical time in the city’s economic recovery for small businesses too often underserved by financial relief programs. Flexible terms address historic barriers to ensure broad access to the fund by eliminating credit score minimums, not requiring application fees, serving start-up and growth-stage businesses, and leveraging the deep roots of local organizations to reach businesses in BIPOC and immigrant communities.
“Small businesses kept us going through the pandemic, and they are leading the way during our economic recovery. Now, we are giving back with the NYC Small Business Opportunity Fund,” said Mayor Adams. “Our efforts to cut red tape and jumpstart our recovery are already delivering results: We saw 13,600 new businesses open in the first half of 2022, including 1,800 new storefronts. This new loan fund will help us build on that progress and represents the next great step forward in our city’s partnership with our entrepreneurs and small business owners.”
The Opportunity Fund is made possible through a historic partnership between the City of New York and Goldman Sachs, Mastercard Center for Inclusive Growth, Community Reinvestment Fund (CRF), and local community development financial institutions (CDFIs), and fulfills a key commitment in Mayor Adams’ “Rebuild, Renew, Reinvent: A Blueprint for New York City’s Economic Recovery.”
Since day one of his administration, Mayor Adams has focused on helping small businesses thrive as they are crucial to New York City’s economic recovery.
The Opportunity Fund further builds on the Adams administration’s historic efforts to help small business, including Executive Order 2, also known as “Small Business Forward,” which identified over one hundred reforms to reduce fines, extend cure periods, and eliminate violations. In addition, in May, the mayor signed Executive Order 15, which ordered the creation of a Small Business Advisory Commission. These efforts are delivering tangible results. According to the latest research from the city’s Economic Development Corporation, 13,600 new businesses opened in the first half of 2022, including 1,800 new storefronts.
“Small businesses are the engines of our economy, and the NYC Small Business Opportunity Fund will give business owners across the five boroughs the fuel they need to thrive,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “This innovative public-private partnership will not just help over 1,000 businesses but also have lasting ripple effects in the lives of workers and in the health of our neighborhoods where these businesses operate.”
“To reach a full and equitable recovery, New York City’s small businesses need a boost — and with the launch of the historic NYC Small Business Opportunity Fund, SBS is delivering,” said SBS Commissioner Kim. “This loan fund will unlock opportunities for businesses hit hardest by the pandemic by offering flexible and affordable financing to help businesses recover and grow. Our team and dedicated partners are committed to ensuring local small businesses, particularly those too often excluded from pandemic-era relief, use this fund to propel themselves forward.”
“We are determined to ensure that affordable capital reaches last-mile lenders who prioritize serving under-resourced small business owners,” Asahi Pompey, global head of corporate engagement, Goldman Sachs. “Through One Million Black Women, we are focused on advancing targeted capital solutions with proven impact, and we are honored to partner with Mayor Adams and Small Business Services in this effort.”
“We’re grateful to work with dedicated CDFI partners to help small business owners in New York City,” said Sherry Wang, co-head, Urban Investment Group, Goldman Sachs Asset Management. “We believe that the NYC Small Business Opportunity Fund will be critical to increasing access to capital for businesses disproportionately impacted by the pandemic and will contribute to an equitable recovery across our city.”
“Small businesses carried our communities through the pandemic, and we now have a chance to collectively and creatively help carry them through their continued recovery,” said Shamina Singh, founder and president, Mastercard Center for Inclusive Growth. “Our engagement with small businesses through our Strive program has shown us that enabling access to affordable capital is essential for creating long-term resilience, particularly for underserved businesses. We’re honored and eager to bring our assets and insights to this joint initiative, which recognizes not only the economic promise of supporting small businesses, but also the difference-making power of innovative public-private partnership.”
“Small business owners continue to feel the impact of economic uncertainty,” said Keith Rachey, executive vice president and chief impact and strategy officer, CRF. “We are honored to work in partnership with the city, CDFIs, local business support organizations, and others to bring the Opportunity Fund to life and reach small businesses with a history of underrepresentation.”
Small businesses powered New York City through the pandemic, and they are leading the way during this recovery. The new Opportunity Fund will support a more inclusive and diverse economy by enabling business owners to:
- Apply for loans ranging from $2,000 to $250,000;
- Pay a below-market fixed interest rate of 4 percent, regardless of loan size;
- Pay only interest for the first six months for start-up businesses, regardless of loan size;
- Use the loan to refinance existing high-interest debt, expand their customer base, hire new employees, and more; and
- Access free long-term business supports through SBS.
CDFI partners, including Accompany Capital, Ascendus, BOC Capital, Harlem Entrepreneurial Fund (HEF), NDC, Pursuit Community Finance, Renaissance Economic Development Corporation, and Trufund, will provide application assistance and no-cost financial advice, utilizing a novel model of local engagement to reach businesses in greatest need. Additional CDFIs can apply to partner on the fund. To further the fund’s reach in hard-hit communities, SBS will launch a major door-to-door outreach campaign throughout the five boroughs.
“CDFIs have been called ‘first responders’ to recovery efforts after financial crises,” said Yanki Tshering, executive director, Accompany Capital. “Accompany Capital is delighted to join our fellow CDFIs in ensuring that this very important Department of Small Business Services initiative will enable small businesses in underserved communities to get access to low-cost and flexible capital.”
“As with plants, we must nourish a local economy at its roots. Local, neighborhood-based BIPOC businesses are the roots of our city’s economy,” said Paul Quintero, CEO, Ascendus. “The capital we infuse through this program not only fertilizes today’s economic soil but also catalyzes tomorrow’s economic green shoots.”
“Throughout the pandemic, BOC Capital provided thousands of minority- and BIPOC-owned businesses with COVID-19 pandemic relief funds and PPP assistance. However, with the pandemic hitting low- and moderate-income neighborhoods the hardest, there is still a significant need for capital among local businesses who were deeply impacted by the pandemic,” said Nancy Carin, executive director, BOC Capital Corp. “With the support of the Opportunity Fund, BOC Capital looks forward to working closely with the City of New York to empower BIPOC small business owners by providing equitable resources, hands-on support, and financing.”
“HEF is delighted to participate in this public-private partnership providing capital and technical assistance to small businesses still recovering from the devastating impact of the COVID-19 pandemic,” said E. Hamil Douglas, president and CEO, Harlem Commonwealth Council, Inc. “Small businesses in Harlem, Upper Manhattan, and the Bronx suffered disproportionally from COVID-19, and this fresh injection of capital will help stabilize these businesses and, by extension, the communities they serve.”
“NDC is honored to be selected as an originating lender in Mayor Adams’ economic recovery blueprint initiative,” said Dan Marsh, president and CEO, NDC. “Over the past three years, NDC has provided loans to thousands of small BIPOC, immigrant, and low-income business owners in New York City and around the nation to ensure that they not only survived the challenges of the pandemic but also had the financial resources to recover, stabilize, and grow. We will continue to work with our community partners throughout the city to connect with those businesses in all five boroughs and meet the mayor’s goals for economic strength and diversity.”
“Pursuit applauds the city’s commitment to support small businesses most impacted by the long-term effects of the pandemic,” said Steve Cohen, president, Pursuit Community Finance. “Access to low-cost capital remains a barrier to recovery and growth, and this program will directly address that need.”
“The NYC Small Business Opportunity Fund will be a critical new resource to assist the immigrant small businesses we serve throughout New York City,” said Jessie Lee, managing director, Renaissance Economic Development Corporation. “Many of these businesses continue to suffer from the aftershocks of the pandemic and the impacts of inflation. Renaissance is proud to be part of this program, which will help save small businesses.”
“The NYC Small Business Opportunity Fund will provide a boost that so many small business owners need as they continue to rise above the challenges of the last couple years and get back to business,” said James H. Bason, president and CEO, TruFund Financial Services, Inc. “We strongly believe that access to capital and business advisory services is critical to growing resilient small businesses and sustaining vibrant communities. Our participation in the NYC Small Business Opportunity Fund will further enhance our ability to have an impact on the small businesses we serve.”
To be eligible for a loan, businesses must have less than $5 million in annual revenue and be located within New York City. Applications to the Opportunity Fund open online today, and those interested can learn more about the Fund by calling SBS’s hotline at (888) SBS-4NYC. In addition, the city will offer webinars to help businesses learn about the application process and the steps involved. The webinars will be offered weekly beginning on Tuesday, January 24, 2023.
“Small businesses are the heart of our neighborhoods and the backbone of our economy, and they must continue to be at the forefront of our economic recovery,” said U.S. Representative Ritchie Torres. “I encourage all the small businesses across New York City — and particularly across my district in the Bronx — to take advantage of this unprecedented opportunity that will deliver much-needed resources and financial relief.”
“Access to financing via low-interest loans and grant programs is crucial to the economic recovery and forward movement of our local economies,” said Lisa Sorin, president, Bronx Chamber of Commerce. “Today's announcement by Mayor Adams provides an additional tool for small businesses, which increases access to affordable capital during a period of global inflation.”
“As our business corridors — the economic beacons of our neighborhoods — continue to recover from the pandemic and other community challenges, this new Opportunity Fund is a welcome lifeline to support the many businesses that have been on Fordham Road for generations,” said Wilma Alonso, president and CEO, Fordham Road Business Improvement District. “We thank Mayor Adams for his support of our small business community, and we look forward to working with the city to help our businesses recover, grow, and succeed.”
“The Opportunity Fund will provide critical funding to small businesses across New York City, particularly those in Black, Brown, and immigrant communities,” said Shelley Worrell, founder, I AM Caribbeing. “I AM Caribbeing is honored to partner with Mayor Adams and Small Business Services in hard-to-reach communities such as Brooklyn’s Little Caribbean to accelerate access to funding, resources, and opportunities allowing businesses to start, scale, and advance entrepreneurship.”
“On behalf of the Korean-American community in New York City, which includes thousands of Korean American-owned small businesses, we applaud Mayor Adams’ ongoing efforts and initiatives, which are designed to ameliorate the financial hardship faced by small businesses, which are essential to the wellbeing of New York City,” said Charles Yoon, president, Korean American Association of Greater New York.
“We at the New York Hispanic Cosmetology and Beauty Chamber of Commerce encourage all small businesses to take advantage of this great opportunity that the city made available to help them thrive and grow,” said Rommy Pennella, vice president and co-founder, New York Hispanic Cosmetology and Beauty Chamber of Commerce.
“It’s a breath of fresh air what Mayor Adams is doing for small businesses, especially during these hard times that they are facing,” said Reverend Carmen Hernandez, chair, New York State Coalition Hispanic Chamber of Commerce.
“The Yemeni American Merchants Association believes that providing adequate resources for small business owners is essential in creating a more equitable economic landscape,” said Joel Feliciano, chief operating officer, Yemeni American Merchants Association. “We expect that this new program will make it easier for entrepreneurs of all backgrounds to tap into important sources of capital, which will allow them to focus on cultivating sustainable businesses. We applaud this administration’s commitment to ensuring our small business owners have access to these much-needed services that will help strengthen local economies across the city. We look forward to continuing our work with SBS as they roll out more details over the coming weeks.”
Alexandria Ocasio-Cortez - Remembering Ms. Jacobs
This weekend, my congressional team and I held our monthly town hall in Co-Op City, which is the largest affordable housing community in the U.S. and the largest cooperative housing community in the world. It was our first-ever town hall in Co-Op City since redistricting brought it into our district of NY-14 for the first time.
My second grade teacher, Ms. Jacobs, showed up to surprise me at the town hall and kept a note I wrote her over 20 years ago:
On my last day of second grade, I got on the school bus home and told one of the adults on the bus how excited I was to go back to Ms. Jacobs’ class in the fall, after summer break.
They told me, “Oh, you’re going to third grade! Ms. Jacobs isn’t going to be your teacher anymore — third graders go to a different school."
I started bursting into tears at this realization. I sobbed and sobbed, big, big tears. I genuinely thought I’d never see Ms. Jacobs again, and I never got to say goodbye knowing that. I cried the entire bus ride home with my face leaning against the rattling bus window.
Over 20 years later, Ms. Jacobs came to my town hall that I was hosting as a duly elected member of Congress. I finally did get to see her again after all 
and I got to tell her about my bus ride home that day. She changed my life!
Teachers: thank you. For everything. 
Pa’lante,
Alexandria
Statement from Speaker Adrienne Adams and Education Chair Rita Joseph on NYC Department of Education’s Changes to Fair Student Funding Formula
“The Fair Student Funding (FSF) formula has long been in need of reform to better support our students and school communities. Today’s announcement that the Department of Education will adopt key recommendations from the Working Group to provide greater funding for students living in temporary housing, as well as to schools with the greatest number of students with disabilities, specialized academic needs, and living in poverty is a welcome step. By allocating an estimated $90 million in new funding for this support, the department has listened to the advocates for our students who participated in the Working Group. We are also encouraged by changes to the budget appeal process and commitments to improve transparency around how DOE issues school budgets, so the public and government oversight entities are not left without basic information.
“Today’s announcement should be a start of efforts to ensure resources are invested in our system where they are most needed. It is critical that the voices and vital insights of parents, students, and educators guide the department to meet the needs of our school communities. We urge the DOE to continue convening this Working Group for evaluation of the funding formulas to ensure they position our schools and students to succeed.”
Maryland Man Pleads Guilty to Felony Charge For Actions During Jan. 6 Capitol Breach
Defendant Was Involved in Multiple Assaults Including Using a Heavy Plank on One Officer
A Maryland man pleaded guilty today to the felony charge of assaulting, resisting, or impeding officers using a dangerous weapon during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Jacob Michael Therres, 25, of Fallston, Maryland, was arrested on November 14, 2022. U.S. District Court Judge James E. Boasberg scheduled a sentencing hearing for April 24, 2023.
According to court documents, on the afternoon of Jan. 6, 2021, Therres was involved in multiple assaults of law enforcement officers with dangerous weapons on the Lower West Terrace of the Capitol. At one point, Therres threw a long, heavy plank at a line of police officers, and it struck an officer in the head. The officer experienced immediate and lingering medical effects from the blow to the head. Therres also sprayed a chemical irritant towards a line of officers.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Maryland.
The case is being investigated by the FBI’s Baltimore Field Office and the FBI’s Washington Field Office, which identified Therres as #180 on its seeking information photos. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 24 months since Jan. 6, 2021, more than 950 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 284 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
MAYOR ADAMS AND CHANCELLOR BANKS PUSH TO INCREASE EQUITY IN FAIR STUDENT FUNDING FORMULA
Proposed Changes in Direct Response to Recommendations Made by Fair Student Funding Working Group Convened in 2022
New York City Mayor Eric Adams and New York City Department of Education (DOE) Chancellor David C. Banks today announced proposed improvements to the Fair Student Funding (FSF) formula for the 2023-2024 school year in an effort to increase equity in the formula. The improvements being announced today are in direct response to the recommendations made by the Fair Student Funding Working Group in November 2022. The FSF formula funds approximately two-thirds of community district school budgets and specifically funds schools based on their students’ needs.
New York City public schools will propose the following changes:
- An additional weight for students in temporary housing to schools serving these students, including recent asylum-seeking students.
- An additional weight for schools that have higher concentrations of students with needs, including students in poverty, students with disabilities, and English language learners.
“From day one of our administration, we put family voices front and center in our policy and programs. This has allowed us to make real change by working together to utilize different backgrounds and ideals,” said Mayor Adams. “Thanks to the work of our Fair Student Funding Working Group, we are prioritizing the needs and voices of students who have been long forgotten, and this is only the beginning of turning New York City public schools into a thoughtful institution for all.”
“These changes, made as a direct result of the thoughtful work of the Fair Student Funding Working Group, are representative of New York City public schools’ commitment to working directly with our communities and putting into place genuine change to support our schools and our kids,” said DOE Chancellor Banks. “This was complicated work they took on, and I am so appreciative of the work of the Fair Student Funding Working Group and co-chairs Dia Bryant and Jasmine Gripper and am thrilled to be moving these recommendations forward.”
Building on another one of the challenges the working group identified, New York City public schools will also be enhancing the budget appeals process to ensure it is responsive to schools’ special education staffing needs. Finally, New York City public schools will be focusing intentionally on increasing transparency and community engagement regarding the FSF formula and school budgets more broadly.
The proposed weight changes will go to the Panel for Educational Policy for review.
In July 2022, the working group convened in response to Chancellor Banks’ call for public engagement to examine the FSF formula. The working group — led by two co-chairs, Alliance for Quality Education Executive Director Jasmine Gripper and Ed Trust-New York Executive Director Dr. Dia Bryant — engaged in a robust process for three months, meeting with national experts, conducting community engagement sessions, and considering specific policy improvements and their impact on New York City schools and communities. In November 2022, the working group released their report for consideration by the chancellor.
More specifically, New York City public schools are recommending these changes:
Adding a students in temporary housing weight to the FSF formula:
- This weight is a groundbreaking shift in how schools allocate resources to public school students, with this specific focus on supporting students who reside in temporary housing.
- This funding will support students in asylum-seeking families who are living in temporary housing — providing additional resources to the schools that are taking them in.
- This change is expected to drive approximately $45 million in funding, impacting students in temporary housing across all five boroughs.
Adding a concentration weight to the FSF formula:
- Schools that serve higher concentrations of students with needs (such as students living in poverty, students with disabilities, and English language learners) may require additional resources to provide high-quality educational opportunities to their students.
- This change is expected to drive over $45 million in funding to schools in all five boroughs and would impact over 300 schools across the city serving the highest concentration of neediest students.
Ensuring the budget appeals process is responsive to special education programming needs:
- Throughout the engagement sessions, a significant focus of the working group was the critical need for schools to be able to meet the staffing needs of students with disabilities in a general education setting. Through the budget appeals process, New York City public schools will refine the budget appeals process to prioritize supporting schools in meeting these needs.
Increasing budget transparency for families, students, and the public:
- From the working group and their community engagement sessions, New York City public schools heard concerns over a lack of transparency and understanding in how to fund schools, how the formula works, and what funds are available at the school level.
- New York City public schools are now taking steps to address this by improving transparency around school budgets and its own budget through additional, more accessible information available on its website and through its own external engagement process.
Permits Filed For 1959 Jerome Avenue In Morris Heights, The Bronx
Permits have been filed for a 15-story mixed-use building at 1959 Jerome Avenue in Morris Heights, The Bronx. Located between West 177th Street and West Tremont Avenue, the lot is two blocks south of the Burnside Avenue subway station, serviced by the 4 train. Peter Fine is listed as the owner behind the applications.
The proposed 165-foot-tall development will yield 243,007 square feet, with 170,723 square feet designated for residential space, 42,832 square feet for community facility space, and 29,451 square feet for commercial space. The building will have 333 residences, most likely condos based on the average unit scope of 1,004 square feet. The concrete-based structure will also have a cellar, one commercial loading berth, and one enclosed parking space.
GF55 Architects is listed as the architect of record.
Demolition permits were filed this month for the two-story structure on the site. An estimated completion date has not been announced.
Former Special Agent In Charge Of The New York FBI Counterintelligence Division Charged With Violating U.S. Sanctions On Russia
A Russian Court and Government Interpreter Is Also Charged with Violating U.S. Sanctions on Russia
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a five-count Indictment charging CHARLES MCGONIGAL and SERGEY SHESTAKOV with violating and conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and with conspiring to commit money laundering and money laundering. SHESTAKOV is also charged with making material misstatements to the FBI. The defendants were arrested on Saturday evening, and they will be presented this afternoon before Magistrate Judge Sarah L. Cave in Manhattan federal court. The case has been assigned to U.S. District Judge Jennifer H. Rearden.
U.S. Attorney Damian Williams said: “As alleged, Charles McGonigal, a former high-level FBI official, and Sergey Shestakov, a Court interpreter, violated U.S. sanctions by agreeing to provide services to Oleg Deripaska, a sanctioned Russian oligarch. They both previously worked with Deripaska to attempt to have his sanctions removed, and, as public servants, they should have known better. This Office will continue to prosecute those who violate U.S. sanctions enacted in response to Russian belligerence in Ukraine in order to line their own pockets.”
FBI Assistant Director in Charge Michael J. Driscoll said: “The FBI is committed to the enforcement of economic sanctions designed to protect the United States and our allies, especially against hostile activities of a foreign government and its actors. Russian oligarchs like Oleg Deripaska perform global malign influence on behalf of the Kremlin and are associated with acts of bribery, extortion, and violence. As alleged, Mr. McGonigal and Mr. Shestakov, both U.S. citizens, acted on behalf of Deripaska and fraudulently used a U.S. entity to obscure their activity in violation of U.S. sanctions. After sanctions are imposed, they must be enforced equally against all U.S. citizens in order to be successful. There are no exceptions for anyone, including a former FBI official like Mr. McGonigal. Supporting a designated threat to the United States and our allies is a crime the FBI will continue to pursue aggressively.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit making or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy (the “OFAC Sanctions”). According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy.
CHARLES MCGONIGAL is a former Special Agent in Charge (“SAC”) of FBI’s Counterintelligence Division in New York, who retired in 2018. While working at the FBI, MCGONIGAL supervised and participated in investigations of Russian oligarchs, including Deripaska. SERGEY SHESTAKOV is a former Soviet and Russian diplomat who later became a U.S. citizen and a Russian interpreter for courts and government offices.
In 2021, MCGONIGAL and SHESTAKOV conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following their negotiations with an agent of Deripaska, MCGONIGAL and SHESTAKOV agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. As part of their negotiations with Deripaska’s agent, MCGONIGAL, SHESTAKOV, and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payments from Deripaska.
MCGONIGAL and SHESTAKOV were aware that their actions violated U.S. sanctions because, among other reasons, while serving as SAC, MCGONIGAL received then-classified information that Deripaska would be added to a list of oligarchs considered for sanctions as part of the process that led to the imposition of sanctions against Deripaska. In addition, in 2019, MCGONIGAL and SHESTAKOV worked on behalf of Deripaska in an unsuccessful effort to have the sanctions against Deripaska lifted. In November 2021, when FBI agents questioned SHESTAKOV about the nature of his and MCGONIGAL’s relationship with Deripaska’s agent, SHESTAKOV made false statements in a recorded interview.
CHARLES MCGONIGAL, 54, of New York, New York, and SERGEY SHESTAKOV, 69, of Morris, Connecticut, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the IEEPA, one count of violating the IEEPA, one count of conspiring to commit money laundering, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. SHESTAKOV is also charged with one count of making false statements, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.