North Korean Trio Busted in $Millions Bank Fraud

WASHINGTON D.C. – A shadowy network designed to bypass U.S. sanctions and funnel money to North Korea has been exposed, with federal prosecutors announcing charges against Ri Jong Chol, Ri Yu Gyong, and Gan Chee Lim. The trio is accused of conspiracy to violate North Korean Sanctions Regulations, bank fraud, and conspiracy to launder funds – a brazen attempt to keep the Kim regime afloat.

According to the Department of Justice, the scheme, active between August 2015 and at least August 2016, involved establishing and utilizing front companies to transmit U.S. dollar wires through the United States, ostensibly for legitimate commodities purchases, but in reality, benefitting North Korean customers. The defendants allegedly deceived U.S. banks into processing transactions they would normally reject, knowing full well the funds were ultimately destined for a pariah state.

“Violations of U.S. sanctions on North Korea enrich the regime and allow it to continue to fund the destabilizing activities that the sanctions are meant to prevent,” declared Assistant Attorney General for National Security, John C. Demers. “These defendants allegedly violated U.S. sanctions by lying to international financial institutions in order to dupe them into processing transactions in U.S. dollars which they would not otherwise have cleared. The Department of Justice will continue to investigate and prosecute violations of the North Korea sanctions so that one day that country may rejoin the community of nations.”

Acting U.S. Attorney Sherwin minced no words, stating, “The defendants knowingly and willfully circumvented sanctions designed to protect the U.S. financial system from abuse by individuals working on behalf of North Korea.” The investigation revealed the defendants were acutely aware of the sanctions, even referencing news articles detailing them, yet proceeded with the illicit scheme anyway. They also reportedly utilized shipping companies previously flagged for attempting to deliver luxury goods to North Korea, and deliberately avoided seeking necessary U.S. government licenses.

Federal investigators uncovered that Ri Jong Chol held a significant position – Deputy Director – within a company already sanctioned by the U.S. Department of Treasury, identified as a subordinate of North Korea’s Ministry of People’s Armed Forces. This connection solidifies the direct link between the alleged fraud and the highest levels of the North Korean government. Alan E. Kohler Jr, Assistant Director of the FBI’s Counterintelligence Division, affirmed, “The FBI will not stand idle while North Koreans attempt to covertly access the U.S. financial system in violation of U.S. sanctions.”

The case, spearheaded by the FBI’s Minneapolis field office, is being prosecuted by the National Security Division and the U.S. Attorney’s Office for the District of Columbia. The team, led by Assistant U.S Attorney Zia M. Faruqui and National Security Division Trial Attorneys David Recker and Alexandra Hughes, is determined to dismantle this sanctions-busting operation and bring the perpetrators to justice. As Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division, put it, “Protecting our financial institutions from National Security focused money laundering is a top priority of our office.”

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