DOJ: 14 North Koreans Charged in $88 Million IT Fraud Scheme

The FBI in St. Louis, on Dec. 12, announced the indictments of 14 North Korean nationals in a scheme using IT workers who used false identities to get remote jobs with U.S. companies, then funneled their wages and other funds back to North Korea for use in weapons programs. (Jim Salter/AP)

By    |   Friday, 13 December 2024 04:48 PM EST ET

The Justice Department has charged 14 North Korean citizens with multiple counts of conspiracy to commit identity theft, wire fraud, and other financial crimes in a scheme that netted millions for the alleged perpetrators, NBC News reports.

According to the indictment, which was filed earlier this week in Missouri federal court, the 14 men who allegedly participated in the scheme accumulated at least $88 million in a criminal conspiracy to falsely obtain information technology jobs that began in 2017 and ended in March of last year.

The defendants are accused of conspiracy to violate the International Emergency Economic Powers Act, money laundering, wire fraud, and identity theft, while eight of the defendants are also of aggravated identity theft.

The Justice Department contends that the defendants used stolen U.S. identities that they would use to apply for information technology jobs, sometimes paying Americans to work remotely or attend job interviews under these false identities. The alleged conspirators then used the access they gained to steal sensitive information from these employers and extort them for payment.

The defendants all allegedly worked for two companies controlled by North Korea: Yanbian Silverstar, based in China, and Volasys Silverstar, based in Russia, both of which have been sanctioned by the U.S. Treasury Department. The Justice Department contends that other of the two companies' 130 employees are likely working on similar ways to generate money by avoiding US sanctions.

"To prop up its brutal regime, the North Korean government directs IT workers to gain employment through fraud, steal sensitive information from U.S. companies, and siphon money back to" North Korea, deputy Attorney General Lisa Monaco said in a press release.

"This indictment of 14 North Korean nationals exposes their alleged sanctions evasion and should serve as a warning to companies around the globe — be on alert for this malicious activity by the DPRK regime," she added.

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The Justice Department has charged 14 North Korean citizens with multiple counts of conspiracy to commit identity theft, wire fraud, and other financial crimes in a scheme that netted millions for the alleged perpetrators, NBC News reports.
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