Fourteen Democratic People’s Republic of North Korea (DPRK or North Korea) nationals have been indicted for violating U.S. sanctions and to commit wire fraud, money laundering, and identity theft.
The State Department issued a $5 million reward scheme for any information that could be linked to Yanbian Silverstar and Volasys Silverstar, the men and companies involved in the fraud.
“To prop up its brutal regime, 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,” said Deputy Attorney General Lisa Monaco. “This indictment of 14 North Korean nationals exposes their alleged sanctions evasion and should serve as a warning to companies around the globe — be on alert for this malicious activity by the DPRK regime.”
14 North Korean nationals indicted in federal court
The indictment and the information presented in court showed that these fourteen men worked in some capacity for Korean-controlled companies Yanbian Silverstar and Volasys Silverstar. They face a possible twenty-seven years in a federal penitentiary for multiple crimes.
Their tasks and roles varied from senior company leaders to skilled IT workers. Over six years, they employed an estimated 130 North Korean IT workers. According to the court, they aggressively attempted to generate funds that would wind back to the DPRK, known as “socialism competitions.”
It is estimated that each individual was instructed to earn $10,000 a month, generating at least $88 million throughout the six-year conspiracy. Some employees attempted to supplement their wages by “stealing sensitive company information, such as proprietary source code, and then threatening to leak such information unless the employer made an extortion payment.”
”IT workers would compete to generate money for the DPRK. Bonuses and other prizes were awarded to the top performers during these competitions. As part of their scheme, North Korean IT workers obtained salaried employment at numerous U.S.-based companies and nonprofit organizations. In some instances, U.S. employers unwittingly employed North Korean IT workers for years and paid them hundreds of thousands of dollars in salary,” said the statement.
The fourteen men are charged with conspiracy to violate the International Emergency Economic Powers Act, conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit identity theft. Eight of these individuals have also been charged with aggravated identity theft.
The indictment was unsealed in federal court in St. Louis, Missouri identified the men as Jong Song Hwa (정성화), Ri Kyong Sik (리경식), Kim Ryu Song (김류성), Rim Un Chol (림은철), Kim Mu Rim (김무림), Cho Chung Pom (조충범), Hyon Chol Song (현철성), Son Un Chol (손은철), Sok Kwang Hyok (석광혁), Choe Jong Yong (최정용), Ko Chung Sok (고충석), Kim Ye Won (김예원), Jong Kyong Chol (정경철), and Jang Chol Myong (장철명).
“The fourteen conspirators indicted yesterday victimized companies across the United States, as well as many Americans whose identities they stole, to generate revenue for the North Korean regime,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division.
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