WASHINGTON (AP) — The Justice Department announced Thursday multiple arrests in a series of complex stolen identity theft cases that officials say are part of a wide-ranging scheme that generates enormous proceeds for the North Korean government, including for its weapons program.
The conspiracy involves thousands of North Korean information technology workers who prosecutors say are dispatched by the government to live abroad and who rely on the stolen identities of Americas to obtain remote employment at U.S.-based Fortune 500 companies, jobs that give them access to sensitive corporate data and lucrative paychecks. The companies did not realize the workers were overseas.
The fraud scheme is a way for heavily sanctioned North Korea, which is cut off from the U.S. financial system, to take advantage of a “toxic brew” of converging factors, including a high-tech labor shortage in the U.S. and the proliferation of remote telework, Marshall Miller, the Justice Department's principal associate deputy attorney general, said in an interview.
The Justice Department says the cases are part of a broader strategy to not only prosecute individuals who enable the fraud but also to build partnerships with other countries and to warn private-sector companies of the need to be vigilant — and not duped — about the actual identities of the people they're hiring.
FBI and Justice Department officials launched an initiative in March centered on the fraud scheme and last year announced the seizure of more than a dozen website domains used by North Korean IT workers.
“More and more often, compliance programs at American companies and organizations are on the front lines of protecting our national security,” Miller said. "Corporate compliance and national security are now intertwined like never before.”
The Justice Department said in court documents in one case that more than 300 companies — including a high-end retail chain and a “premier Silicon Valley technology company” — have been affected and that more than $6.8 million in revenue has been generated for the workers, who are based outside of the U.S., including in China and Russia.
Those arrested include an Arizona woman, Christina Marie Chapman, who prosecutors say facilitated the scheme by helping the workers obtain and validate stolen identities, receiving and hosting laptops from U.S. companies who thought they were sending the devices to legitimate employees and helping the workers connect remotely to companies.
According to the indictment, Chapman ran more than one “laptop farm” where U.S. companies sent computers and paychecks to IT workers they did not realize were overseas.
At Chapman’s laptop farms, she allegedly connected overseas IT workers who logged in remotely to company networks so it appeared the logins were coming from the United States. She also is alleged to have received paychecks for the overseas IT workers at her home, forging the beneficiaries’ signatures for transfer abroad and enriching herself by charging monthly fees.
Other defendants include a Ukrainian man, Oleksandr Didenko, who prosecutors say created fake accounts at job search platforms that he then sold to overseas workers who went on to apply for jobs at U.S. companies. He was was arrested in Poland last week, and the Justice Department said it had seized his company's online domain.
A Vietnamese national, Minh Phuong Vong, was arrested in Maryland on charges of fraudulently obtaining a job at a U.S. company that was actually performed by remote workers who posed as him and were based overseas.
It was not immediately clear if any of the three had lawyers.
Separately, the State Department said it was offering a reward for information about certain North Korean IT workers who officials say were assisted by Chapman.
And the FBI, which conducted the investigations, issued a public service announcement that warned companies about the scheme, encouraging them to implement identity verification standards through the hiring process and to educate human resources staff and hiring managers about the threat.
Associated Press writer Frank Bajak in Boston contributed to the report.
FILE - The seal for the Justice Department is photographed in Washington, Nov. 18, 2022. The Justice Department has announced three arrests in a complex stolen identity scheme that officials say generates enormous proceeds for the North Korean government, including for its weapons program. (AP Photo/Andrew Harnik, File)
NEW YORK (AP) — Shohei Ohtani hit a leadoff homer and scored four times, Mookie Betts also went deep and drove in four runs, and the Los Angeles Dodgers routed the New York Mets 10-2 on Thursday night for a 3-1 lead in their lopsided National League Championship Series.
Betts had a two-run homer and a two-run double among his four hits. Max Muncy extended his streak of reaching base safely to 12 plate appearances, a postseason record, and the Dodgers moved within one win of their 25th pennant — most in NL history.
Game 5 is Friday at Citi Field, with Jack Flaherty expected to pitch for Los Angeles looking to put his hometown team in the World Series.
David Peterson was set to make his first playoff start for New York after pitching well out of the bullpen this postseason.
“Peterson is fully rested. Last time he pitched was four days ago. So I’m anticipating him making a regular start,” Mets manager Carlos Mendoza said.
Surprise cleanup batter Tommy Edman had three RBIs, including a tiebreaking double off starter Jose Quintana with two outs in the third inning. Kiké Hernández followed with an RBI single that made it 3-1.
Betts broke open the game, greeting reliever Jose Buttó with a two-run double in the fourth and then right-hander Phil Maton with a two-run homer in the sixth.
Both big hits followed walks to Ohtani, handed three straight free passes after homering on consecutive swings going back to Game 3.
“Not only Ohtani, you have to take care of the other guys behind him,” Mendoza said. “When he goes out there first at-bat of the game and hits it like that, obviously, it’s a good feeling for them. We knew that wasn’t going to beat us, but we couldn’t just stop it.”
Betts gave a huge fist pump between second and third as he rounded the bases following his third homer of these playoffs.
Mark Vientos provided a rare highlight for New York, hitting his fourth postseason homer in the first inning off $325 million rookie Yoshinobu Yamamoto.
But the Mets, who were 14-2 in their past 16 games at Citi Field when they arrived back home Wednesday, were blown out on their own turf for the second successive night.
New York has been outscored 30-9 in the series, including 9-0 in the opener and 8-0 in Game 3.
“You’ve got to give those guys credit. That’s a deep lineup,” Mendoza said. “And whether (our starters) are feeling it or not, we haven’t executed and we haven’t got length from them.”
The latest flop after a thrilling comeback ride this far into October hushed a sellout crowd of 43,882 and left Citi Field eerily quiet in the late innings — and just about as empty as April.
Evan Phillips earned the win with 1 1/3 scoreless innings in relief of Yamamoto.
Trailing 7-2, the staggering Mets had a chance to get back in the game when they loaded the bases with nobody out in the sixth. But then Phillips got two outs and Blake Treinen retired pinch-hitter Jesse Winker on a fly to the right-field warning track.
TRAINER’S ROOM
Dodgers: All-Star 1B Freddie Freeman missed his second game of the playoffs. Freeman has been playing with a badly sprained and swollen right ankle throughout the postseason.
Mets: Slumping catcher Francisco Alvarez hobbled to first base in pain after getting drilled by Yamamoto's 91 mph sinker to begin the fifth. He was pulled for a pinch hitter with the bases loaded in the sixth.
UP NEXT
Acquired from Detroit at the July 30 trade deadline, Flaherty went 6-2 with a 3.58 ERA in 10 regular-season starts for the Dodgers and finished 13-7 with a 3.17 ERA overall. He allowed two hits over seven innings to win the NLCS opener 9-0.
AP MLB: https://apnews.com/hub/mlb
Los Angeles Dodgers' Shohei Ohtani scores past New York Mets catcher Francisco Alvarez on a double by Mookie Betts during the fourth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Ashley Landis)
Los Angeles Dodgers' Shohei Ohtani scores past New York Mets catcher Francisco Alvarez on a double by Mookie Betts during the fourth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Frank Franklin II)
Los Angeles Dodgers' Shohei Ohtani reacts after getting hit with a foul ball during the eighth inning in Game 4 of a baseball NL Championship Series against the New York Mets, Thursday, Oct. 17, 2024, in New York. (AP Photo/Ashley Landis)
Los Angeles Dodgers' Shohei Ohtani breaks his bat and grounds out against the New York Mets during the seventh inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Adam Hunger)
Los Angeles Dodgers' Shohei Ohtani celebrates after scoring on Mookie Betts two-run home run against the New York Mets during the sixth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Frank Franklin II)
Los Angeles Dodgers' Shohei Ohtani celebrates in the dugout after scoring on a double by Mookie Betts during the fourth inning in Game 4 of a baseball NL Championship Series against the New York Mets, Thursday, Oct. 17, 2024, in New York. (AP Photo/Frank Franklin II)
Los Angeles Dodgers' Mookie Betts celebrates after a two run double against the New York Mets during the fourth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Adam Hunger)
Los Angeles Dodgers' Mookie Betts hits a two-run home run against the New York Mets during the sixth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York (AP Photo/Adam Hunger)
Los Angeles Dodgers' Mookie Betts celebrates after a two-run home run against the New York Mets during the sixth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Frank Franklin II)
Los Angeles Dodgers' Mookie Betts celebrates after a two-run home run against the New York Mets during the sixth inning in Game 4 of a baseball NL Championship Series, Thursday, Oct. 17, 2024, in New York. (AP Photo/Ashley Landis)
