WASHINGTON — 

A Ukrainian politician and oligarch have been charged with espionage for Russia and trying to influence the 2020 U.S. presidential election, the U.S. Department of Justice announced on Wednesday (December 7). He was charged with money laundering and other crimes related to his secret purchase of two Beverly Hills condos.

The defendant is Ukrainian MP Andrii Derkach. He was sanctioned by the U.S. Treasury Department in 2020 for spreading false information about U.S. officials ahead of the U.S. presidential election. He is accused of using shell companies to conceal two properties he bought for more than $3 million in 2013, according to an eight-count indictment unsealed Wednesday.

Derkach is 55 years old. The Treasury Department said in 2020 that he was alleged to be "a Russian agent active for more than a decade with close ties to Russian intelligence" and "waging a covert influence campaign" to undermine the 2020 presidential election.

As part of his efforts, Derkach allegedly provided false information to Rudy Giuliani. Giuliani, who was then-President Donald Trump's personal attorney, was gathering material against Trump's Democratic opponent, Joe Biden.

The Treasury Department later imposed sanctions on seven individuals and four entities it said were "part of a foreign influence network with links to Russia and ties to (Derkach)."

"Since at least 2019, Derkach and his associates have used the U.S. media, U.S. social media platforms, and influential Americans to spread misleading and unsubstantiated allegations that current and former U.S. Ukraine engage in corruption, money laundering, and illegal political influence.”

The Ukrainian oligarch, who remains at large, faces charges of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), conspiracy to commit bank fraud, conspiracy to commit money laundering, and four counts of money laundering. If convicted, he faces up to 30 years in prison.

"The conduct of this Kremlin intelligence asset that has been sanctioned for his attempt to poison our democracy demonstrates that he is ready, willing, and able to use our banking system to advance his illicit goals," said the U.S. Attorney for the Eastern District of New York Officer Breon Peace said in a statement. "America will not be a safe haven where criminals, oligarchs, or sanctioned entities can hide their ill-gotten gains or influence our elections."

In addition to the criminal prosecution, federal prosecutors have filed a lawsuit seeking the seizure of two of Derkach's apartments.

The Justice Department said the charges and forfeiture action against Dekage represent the first use of criminal and forfeiture powers against senior foreign political officials for concealing property that was passed as part of the 2021 National Defense Authorization Act.

"The hypocrisy of attempting to enjoy the safety, security, and freedom of an open society while secretly working to undermine it pervades every sanction charge announced by the Task Force," said Task Force KleptoCapture said, Andrew Adams. "In the case of Andry DeKach, this is a particularly egregious form of hypocrisy: to be sanctioned for trying to undermine American democracy, while at the same time corruptly seeking to benefit from the protections of American democratic institutions.

" The interagency task force was formed in March to enforce the sweeping sanctions, export restrictions, and economic countermeasures the United States imposed in response to Russia's invasion of Ukraine.

According to the indictment, DeKage and an unnamed co-conspirator hatched a plan in 2013 to buy two apartments in Beverly Hills, one for the two and the other for DeKage's children's use, while concealing Derkach's interest in these transactions from U.S. financial institutions.

After being designated by the Treasury Department, Derkach attempted to evade U.S. sanctions. According to the indictment, the day after he was sanctioned by the Treasury Department, DeKage wrote on Facebook (Facebook): "The decision was drafted by several members of Congress (of a certain political party in the United States) Inspired by State Department representatives."