2 U.S. men sentenced in North Korea IT fraud

Summary

Two New Jersey men were sentenced for helping North Korea place fake IT workers at U.S. companies, according to the Justice Department.

Why this matters

The case shows how U.S. companies can be exposed to identity theft, data theft, and sanctions-related risks through remote hiring schemes. It also underscores a source of revenue U.S. officials say has supported North Korea's government and weapons program.

Two U.S. citizens were sentenced for helping North Korea place remote IT workers at American companies, the U.S. Department of Justice said Wednesday.

Kejia Wang and Zhenxing Wang, both of New Jersey, received prison terms of 7 1/2 years and nine years, respectively. Prosecutors said they provided infrastructure for the scheme, including running or managing “laptop farms” in the United States that let North Korean workers connect remotely and appear to be based in the country.

Co-conspirators also stole the identities of more than 80 Americans and obtained jobs at more than 100 U.S. companies, including some Fortune 500 firms.

The Justice Department said the jobs gave North Korean IT workers salaries and, in some cases, access to trade secrets and source code. In one instance, the department said, a worker stole export-controlled data from an unnamed California artificial intelligence company.

“The ruse placed North Korean IT workers on the payrolls of unwitting U. S. companies and in U.S. computer systems, thereby harming our national security,” John A. Eisenberg, the department’s assistant attorney general for national security, said in the announcement.

Prosecutors said that from 2021 to 2024, Kejia Wang oversaw laptop farms made up of hundreds of computers, while Zhenxing Wang hosted laptops at his home. They also created shell companies and financial accounts linked to the fake IT workers to move millions of dollars in payments overseas.

“In exchange for their services, Kejia Wang, Zhenxing Wang, and the four other U. S. facilitators received nearly $700,000 for their respective roles in the scheme,” the Justice Department said.

The U.S. government also announced rewards of up to $5 million for information that could help counter the schemes, including information on nine people who allegedly worked with the two men.

The case was the latest legal action tied to North Korea’s effort to place suspected IT workers at U.S. and Western companies. The article said U.S. officials have linked such activity, along with cryptocurrency thefts, to funding for the country’s government and weapons program.

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