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Arizona Woman Gets 8.5 Years in $17M North Korea IT Scam
WASHINGTON D.C. – Christina Marie Chapman, 50, of Litchfield Park, Arizona, will spend the next 8.5 years in federal prison after being sentenced today for her central role in a brazen fraud scheme that funneled over $17 million to the Democratic People’s Republic of Korea (North Korea). The scheme involved placing North Korean IT workers – masquerading as legitimate U.S. citizens and residents – in remote positions at over 300 American companies.
Chapman pleaded guilty on February 11, 2025, to conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments in U.S. District Court for the District of Columbia. Judge Randolph D. Moss didn’t just hand down the 102-month prison sentence; he also ordered Chapman to serve three years of supervised release, forfeit $284,555.92 intended for North Korean coffers, and pay a judgement of $176,850. This case represents one of the largest North Korean IT worker fraud schemes ever prosecuted by the Department of Justice, involving the theft of 68 U.S. person identities and the defrauding of 309 U.S. and two international businesses.
U.S. Attorney Jeanine Ferris Pirro minced no words, framing the case as a direct threat to American interests. “North Korea is not just a threat to the homeland from afar. It is an enemy within,” Pirro stated. “It is perpetrating fraud on American citizens, American companies, and American banks. It is a threat to Main Street in every sense of the word.” Pirro issued a stark warning to corporate America, emphasizing the need for robust employee verification processes. “The call is coming from inside the house. If this happened to these big banks, to these Fortune 500, brand name, quintessential American companies, it can or is happening at your company. Corporations failing to verify virtual employees pose a security risk for all. You are the first line of defense against the North Korean threat.”
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division highlighted Chapman’s critical role. “The defendant’s role as a U.S.-based facilitator was critical to North Korea’s complex scheme to defraud American companies and steal the identities of American citizens,” Galeotti said. “This multi-year plot highlights the unique threat that North Korea poses to U.S. companies who hire remote workers. The Criminal Division remains steadfast in its commitment to identify and prosecute individuals who facilitate these criminal schemes against U.S. companies.”
FBI officials echoed those sentiments. “The North Korean regime has generated millions of dollars for its nuclear weapons program by victimizing American citizens, businesses, and financial institutions,” said FBI Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division. “However, even an adversary as sophisticated as the North Korean government can’t succeed without the assistance of willing U.S. citizens like Christina Chapman, who was sentenced today for her role in an elaborate scheme to defraud more than 300 American companies by helping North Korean IT workers gain virtual employment and launder the money they earned.”
Court documents reveal North Korea has deployed a network of skilled IT workers globally, using stolen or fabricated identities to secure remote employment. The scheme aimed to bypass U.S. company controls, allowing North Korea to siphon off illicit revenue. The investigation was a joint effort involving the FBI’s Phoenix Field Office, the IRS Criminal Investigation’s Phoenix Field Office, and the FBI Counterintelligence Division, signaling a continued federal focus on disrupting North Korean financial crimes. The case serves as a grim reminder that the threat from Pyongyang extends far beyond missile tests, reaching into the heart of American businesses and financial systems.
RELATED: Arizona Woman Gets 8.5 Years in $17M North Korea IT Fraud
Key Facts
- State: Washington DC
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|White Collar Crime
- Source: Official Source ↗
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