U.S. prosecutors have charged Christina Chapman, an Arizona resident, with facilitating a scheme that allowed North Koreans to find remote jobs in the United States while sending their earnings back to their home country.
Chapman, along with three North Korean nationals, is accused of orchestrating this complex operation. She allegedly stole the identities of American citizens, enabling foreign IT workers to impersonate Americans and secure employment with U.S. companies.
Facing nine counts of conspiracy to defraud the U.S., Chapman’s involvement is linked to a staggering operation that exploited the identities of 60 individuals, generating nearly $7 million (£5.5 million) in funds sent back to North Korea, potentially contributing to its weapons program.
The scheme, which began in October 2020, reportedly involved about 300 U.S. companies, including several Fortune 500 firms and a major television network. The indictment describes the workers as “highly skilled information technology (IT) workers.”
Chapman allegedly operated a “laptop farm” from her home, where she would access laptops issued by these companies, creating the illusion that the North Korean workers were physically present in the U.S. She assisted the IT workers in connecting to the laptops and collecting their wages.
In return for her services, Chapman charged monthly fees to the overseas IT workers, profiting from the fraudulent scheme. The indictment also notes her unsuccessful attempts to gain employment with U.S. government agencies.
“The charges in this case should serve as a wake-up call for American companies and government agencies employing remote IT workers,” stated Nicole Argentieri, head of the Justice Department’s Criminal Division. “These crimes benefited the North Korean government by providing a revenue stream and, in some cases, proprietary information.”
Chapman was contacted in March 2020 by an unidentified individual who sought her to “be the U.S. face” of their company. She is charged alongside North Korean nationals Jiho Han, Chunji Jin, and Haoran Xu, who are currently at large and linked to North Korea’s Munitions Industry Department, responsible for ballistic missile and weapons production.
The U.S. State Department has offered a reward of $5 million for information leading to the disruption of North Korean money laundering and financial fraud activities. Chapman was arrested on Thursday in Arizona, but it remains unclear if she has retained legal representation.