TEXAS: The US Department of Justice on Tuesday announced the arrests of two Americans accused of helping North Korean IT workers to steal identities and obtain fraudulent employment at US companies to earn money for the North Korean government.
The agency announced the arrests of Michael James Bostelle, of Pennsylvania, and Juan Ceclilio Pena Carrillo, of Texas, on charges of wire fraud, money laundering, and identity theft as part of the alleged scheme, the DOJ said.
As part of the crackdown, the DOJ announced that the FBI conducted searches and took other action between September 21 and September 25 at more than 40 residences in Texas thought to be operating as “laptop farms,” for North Korean IT workers, the DOJ said. The FBI seized roughly 187 laptops and other devices used to carry out the scheme.
The indictment also charged Sun Sheng Ming, Pei Li Guang, Weng Shou Cheng, Han Guo Bin, Wang Jian Jun, Sheng Zhang Kun, Zhang Wei Ping, Zhang Li Ping, Yu Yang and Jin Long, all based in China, for their roles in the operation, according to the statement.
According to an indictment unsealed Tuesday, the Chinese-based operators directed Pena and Tey Michael Nolte, along with at least four other Americans, in the scheme. Nolte was named in the indictment but not charged.
Nolte allegedly recruited, managed and trained Bostelle and other Americans, who allowed their names and personal information to be used to allow the North Korea-directed operation to function in exchange for proceeds from the scheme, the DOJ said. The Americans’ actions included receiving and hosting laptops belonging to US victim companies at their homes to make it appear as if the North Koreans were legitimate employees operating in the US
The “massive” fraud impacted more than 70 US companies, compromised the identities of 25 Americans, caused false information to be sent to multiple US government agencies, and generated at least $3 million in revenue for the overseas IT workers, the DOJ said.
The US government has for years warned of North Koreans surreptitiously gaining employment at US companies to raise money for the North Korean government, access company networks, and steal data.
Attorneys for Pena and Bostelle could not immediately be reached for comment.