North Koreans Violated Sanctions by Posing as American IT Workers, DOJ Says
The U.S. last week indicted 14 North Korean nationals working as part of a “long-running” conspiracy to violate U.S. sanctions. DOJ said they used fake or borrowed identities of Americans and others to pose as remote information technology employees for U.S. companies and generate revenue for the North Korean government.
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The people worked for China-based Yanbian Silverstar and Russia-based Volasys Silverstar, two sanctioned companies controlled by the North Korean government, DOJ said. They were ordered to earn at least $10,000 per month working for U.S. businesses, the agency said, adding that they generated at least $88 million throughout the six-year conspiracy. They also stole sensitive company information from U.S. businesses, including “proprietary source code,” and then threatened to leak that information unless their U.S. employer made an extortion payment.
DOJ said the people used both American and Chinese banks to transfer their earnings to accounts in China “for the ultimate benefit” of the North Korean government.
The U.S. charged Jong Song Hwa, Ri Kyong Sik, Kim Ryu Song, Rim Un Chol, Kim Mu Rim, Cho Chung Pom, Hyon Chol Song, Son Un Chol, Sok Kwang Hyok, Choe Jong Yong, Ko Chung Sok, Kim Ye Won, Jong Kyong Chol and Jang Chol Myong with conspiracy to violate the International Emergency Economic Powers Act, conspiracy to commit wire fraud, conspiracy to commit money laundering and conspiracy to commit identity theft. Eight of them were charged with aggravated identity theft. If convicted, each faces a maximum penalty of 27 years in prison.
The State Department is offering up to $5 million for information on the workers or information that leads to the “disruption of financial mechanisms of persons engaged” in these activities for the North Korean government.