14 North Koreans accused in $88 million identity theft and extortion scheme

• 14 North Koreans were accused by the Department of Justice of conspiring to use fake identities to obtain IT jobs with U.S. companies and transfer funds back to their homeland.
• At least $88 million was generated through the conspiracy as alleged in the Missouri federal court.
• The State Department announced on Thursday that it is providing a reward of up to $5 million for information regarding the conspirators and associates linked to the two "North Korean front companies."

14 North Korean individuals were charged by the Department of Justice for conspiring to use fake identities to obtain IT jobs with American companies and illegally transfer funds to their homeland in violation of U.S. sanctions.

In Missouri federal court, an indictment was filed on Wednesday, accusing a conspiracy that resulted in at least $88 million between April 2017 and March 2023.

The 14 defendants are accused of conspiring to breach the International Emergency Economic Powers Act, as well as committing wire fraud, money laundering, and identity theft. Of these, eight individuals are also charged with aggravated identity theft.

The FBI has listed all 14 conspirators as "Wanted," and each of them could face up to 27 years in prison if convicted, the DOJ announced.

The DOJ stated that some individuals increased their income by illegally obtaining confidential business data and threatening to expose it unless employers paid for its suppression.

Prosecutors claimed that the conspirators used stolen American identities to apply for jobs and paid Americans to pose as them in interviews and meetings. They also created fake websites to deceive potential employers.

The DOJ stated in a press release that some websites "should have raised red flags" about the candidates.

The government stated that some websites contained incomprehensible content, such as, "Moreover, nor is there anyone who loves pain because it is pain, pursues it, wants to gain it, but,".

The conspirators were accused of working for two North Korea-owned companies, Yanbian Silverstar and Volasys Silverstar, which are located in China and Russia, respectively. These companies have previously been sanctioned by the U.S. Treasury Department.

The State Department announced on Thursday that it is providing a reward of up to $5 million for information regarding the conspirators and other individuals linked to the two "North Korean front companies."

The DOJ stated that at least 130 workers have been employed by two companies with the goal of evading sanctions and generating revenue for the ruling regime of the country.

Ashley Johnson, special agent in charge of the FBI's St. Louis field office, stated that the case unveiled Thursday is just the tip of the iceberg.

Johnson stated that thousands of IT workers trained and deployed by the North Korean government are perpetrating the same scheme against U.S. companies daily.

The North Korean government directs IT workers to gain employment through fraud, steal sensitive information from U.S. companies, and siphon money back to the DPRK in order to prop up its brutal regime, according to deputy Attorney General Lisa Monaco in a press release.

The indictment of 14 North Korean nationals for alleged sanctions evasion should serve as a warning to companies worldwide to be alert for malicious activity by the DPRK regime, Monaco stated.