Arizona Woman Gets 8.5 Years for North Korean IT Worker Scheme

An Arizona woman has been sentenced to over eight years in prison for her role in a sophisticated scheme that facilitated North Korean IT workers obtaining remote jobs at hundreds of U.S. companies. The operation, which generated millions of dollars, aimed to fund North Korea's weapons programs and involved stolen identities and a "laptop farm" operated from the woman's home.

Aiding North Korea's Digital Infiltration

Christina Chapman, 50, was sentenced to 102 months in prison for her involvement in a fraudulent scheme that helped North Korean IT workers pose as U.S. citizens and residents. The operation, which ran from October 2020 to October 2023, successfully placed these workers in remote IT positions at over 300 U.S. companies, including Fortune 500 corporations.

• Scheme Details: Chapman operated a "laptop farm" from her Arizona home, hosting company-issued laptops for North Korean workers. This setup was crucial for making the workers appear to be located within the U.S., thereby circumventing employer controls.

• Identity Theft: The scheme involved the theft and use of at least 68 U.S. citizens' identities to create fake profiles and payroll records.

• Financial Laundering: Chapman received payroll checks, deposited funds into her U.S. bank accounts, and then transferred the money overseas to the North Korean workers, effectively laundering the illicit earnings.

• Funding Illicit Activities: The funds generated by this operation, estimated at over $17 million, are believed to have contributed to North Korea's nuclear weapons and ballistic missile programs.

The "Laptop Farm" Operation

Authorities discovered Chapman's extensive operation during a raid of her home in October 2023, where they found over 90 laptops. She was instrumental in helping North Korean operatives obtain jobs by verifying stolen identities and installing necessary software for remote access. Chapman also shipped numerous laptops and hardware overseas, including to a city in China near the North Korean border.

Impact and Sentencing

The Department of Justice described Chapman's case as one of the largest North Korean IT worker fraud schemes charged. The scheme defrauded 309 U.S. businesses and two international companies. Chapman pleaded guilty to charges including conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments. In addition to her prison sentence, she was ordered to forfeit over $284,000 and pay a $176,850 fine. Prosecutors emphasized that lenient sentences could encourage further participation in such schemes, sending a message that this conduct is not tolerated.

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Sources

• An American who helped North Korean IT workers rake in $17.1 million faces sentencing in scheme that trickedhundreds of Fortune 500 companies, Fortune.

• Arizona woman pleads guilty in $17M North Korean IT scam • The Register, The Register.

• Arizona woman imprisoned for $17M North Korean remote workers scheme, Breitbart.

• Arizona woman sentenced in North Korean tech worker scheme, CNN.

• Arizona woman sentenced to 8.5 years for running North Korean laptop farm, The Record from Recorded Future News.