The U.S. Department of Justice has announced a coordinated crackdown on an alleged North Korean remote-worker network that infiltrated more than 70 American companies and generated approximately $3 million.
The operation resulted in two arrests, charges against 14 people, searches at more than 40 suspected laptop farms across Texas and the seizure of approximately 187 computers and other devices.
Federal prosecutors allege that overseas workers used stolen identities, U.S.-based computers and local facilitators to appear as legitimate American employees while remotely accessing corporate systems.
LAPTOP FARMS CONCEALED THE WORKERS’ TRUE LOCATIONS
North Korean IT workers frequently seek remote positions while posing as people located in the United States or other permitted jurisdictions.
Laptop farms help sustain this deception. Employers ship corporate computers to U.S. addresses controlled by facilitators. Overseas workers then access the computers remotely, making their activity appear to originate from inside the United States.
The Justice Department said the FBI searched more than 40 Texas residences between September 21 and September 25 under Operation Lonestar Roundup. The locations were known or suspected of hosting computers for North Korean IT workers.
Authorities seized approximately 187 devices during the operation.
TWO AMERICANS ARRESTED IN MULTIYEAR EMPLOYMENT SCHEME
U.S. nationals Michael James Bostelle of Pennsylvania and Juan Cecilio Pena Carrillo of Texas were arrested under an indictment charging wire fraud, money laundering and aggravated identity theft offenses.
Prosecutors allege that the defendants and their co-conspirators helped overseas workers secure remote employment using stolen or fraudulent identities.
The alleged operation affected more than 70 employers across 17 states and the District of Columbia. Victims included organizations operating in healthcare, communications, cybersecurity support, retail and manufacturing.
Approximately 25 Americans allegedly had their identities compromised.
The charges are allegations. The defendants are presumed innocent unless proven guilty in court.