WASHINGTON — The U.S. Justice Department announced on Tuesday the arrests of two Americans accused of helping North Korean information technology workers steal identities and obtain fraudulent jobs at U.S. companies to earn money for the North Korean government, according to the department and Reuters.
Michael James Bostelle of Pennsylvania and Juan Cecilio Pena Carrillo of Texas were charged with wire fraud, money laundering and identity theft, the department said. An indictment unsealed on Tuesday also charged ten people based in China for their alleged roles in directing the operation, according to the department.
As part of the crackdown, the FBI searched more than 40 residences in Texas between September 21 and September 25 that were believed to be operating as laptop farms for North Korean workers, and seized roughly 187 laptops and other devices, according to the Justice Department.
Prosecutors say the scheme worked by having Americans receive and host laptops belonging to U.S. victim companies at their homes, so that overseas workers using stolen identities would appear to be legitimate employees working inside the United States.
The fraud affected more than 70 U.S. companies, compromised the identities of more than 25 Americans, caused false information to be sent to the Department of Homeland Security, the Internal Revenue Service and the Social Security Administration, and generated at least $3 million in revenue for the overseas workers, according to the department.
U.S. officials described the case as a national security threat as well as a fraud, saying revenue from such schemes helps fund North Korea’s weapons programs. The FBI has also issued a public service announcement with guidance for companies on detecting remote IT worker fraud.
Attorneys for the arrested men could not immediately be reached for comment, according to Reuters. All defendants are presumed innocent unless proven guilty in court, the department noted.
