An Arizona woman has been sentenced to over eight years in prison for her significant role in a fraudulent operation that funnelled more than $17 million to North Korea. According to the US Department of Justice (DoJ), Christina Marie Chapman, 50, from Litchfield Park, assisted North Korean Information Technology (IT) workers in posing as US residents to secure remote jobs at 309 American companies, including Fortune 500 corporations.
This case represents one of the largest North Korean IT worker fraud schemes ever prosecuted by the US DoJ, in which Chapman received a sentence of 102 months (8 years) in prison, along with three years of supervised release, for her guilty pleas on February 11 in the District of Columbia. Her charges included conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder money.
Chapman’s scheme involved operating a laptop farm at her home, where she received and hosted company computers. This deceptive setup made companies believe the work was being performed within the US. She specifically shipped 49 laptops and other devices supplied by US companies to locations overseas, including multiple shipments to a city in China bordering North Korea.
According to court documents (PDF), she also shipped company laptops overseas, including to a city in China bordering North Korea, and forged payroll checks using 68 stolen American identities. These illicit earnings, falsely reported to US tax and social security agencies, were then transferred to individuals abroad.
The defrauded businesses included a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car maker, a luxury retail store, and a US media and entertainment company. Some of these companies were actively targeted by the IT workers who kept lists of desired employers.
US officials condemned Chapman’s actions, emphasising how her scheme financially supported North Korea’s nuclear weapons program and jeopardised national security. Acting Assistant Attorney General Matthew R. Galeotti noted the severe consequences for those who aid foreign adversaries.
According to the DoJ’s press release, the FBI and IRS Criminal Investigation led the probe, seizing over 90 laptops from Chapman’s residence in October 2023. These investigations highlight North Korea’s strategy of deploying skilled IT workers globally to obtain remote employment under false pretences, using US-based facilitators to bypass security measures.
Both the FBI and the State Department have recently issued updated advisories and guidance for HR professionals and businesses, urging caution against such threats and detailing methods used by these illicit IT workers to gain access and generate revenue.
To protect against such schemes, authorities advise businesses to scrutinise identity documents, verify employment history, and implement strict protocols for virtual meetings, including requesting unobscured video backgrounds and checking for AI-generated video anomalies.