Arizona Woman Jailed for Aiding in $17M Fraud Case

An Arizona woman named Christina Marie Chapman pleaded guilty in the United States District Court of the District of Columbia. She faced charges including wire fraud, identity theft, and the laundering of illicit funds.

According to a press release, the 50-year-old, who lived in Litchfield Park, Arizona, played a key role in helping North Korean IT professionals, who falsely claimed to be U.S. residents or citizens, secure remote jobs with over 300 U.S. firms. The operation resulted in the unlawful transfer of over $17 million to both parties.

High-Profile Sectors Breached

Furthermore, North Korea has engaged in the strategic placement of thousands of skilled IT workers globally, including the U.S. These bad actors often leverage falsified, stolen, or unlawfully obtained U.S. identities to gain remote employment.

To evade employment restrictions implemented by U.S. firms to detect unauthorized overseas IT personnel, the group collaborated with individuals operating within the U.S. The North Korean IT workers also attempted to secure jobs at two U.S. government agencies, but their efforts were largely unsuccessful.

Through Chapman’s help, they secured employment at 309 U.S.-based businesses, including entities listed among the Fortune 500. The infiltration reached giants in broadcasting, high tech, aerospace, automotive, luxury retail, and entertainment, including one of the nation’s five largest television networks.

While the bad actors planned the operation, authorities confiscated over 90 laptops from Chapman’s residence during a search conducted in October 2023. As part of the scheme, the woman exported 49 laptops and various electronic devices. These items were supplied by U.S. companies, including several shipments to a Chinese city near the North Korean border.

Chapman Pleads Guilty, Gets 102-Month Prison Sentence

Behind the walls of her Arizona home, Chapman set up a “laptop farm” designed to trick employers into believing their remote workers were U.S.-based. In addition, Chapman obtained and falsified payroll using the stolen names tied to the IT workers. She had their salaries sent directly into her U.S. bank account by direct deposit.  Following her arrest, a court sentenced her to 102 months in prison for her role in the fraudulent scheme. The FBI Chicago Field Office assisted with her arrest.

“The North Korean regime has generated millions of dollars for its nuclear weapons program by victimizing American citizens, businesses, and financial institutions. 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,” Assistant Director Rozhavsky of the FBI said.