Arizona woman pleads guilty in $17M fraud scheme tied to North Korea

• A woman from Litchfield Park, Arizona, pleaded guilty to wire fraud, identity theft and money laundering for orchestrating a $17 million scheme. She stole identities and created fake employment records to secure remote US jobs for overseas IT workers.
• The scheme, which ran from 2020 to 2023, affected over 300 US companies, including Fortune 500 corporations, and raised national security concerns.
• The woman faces 94 to 111 months in federal prison under her plea agreement.

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A Litchfield Park, Arizona woman has pleaded guilty to wire fraud, identity theft, and money laundering for her role in a $17 million scheme that helped overseas IT workers, including some linked to North Korea, secure remote jobs at more than 300 U.S. companies.

Who is Christina Marie Chapman and what did she do?

Christina Marie Chapman, 48, admitted in a Washington, D.C., federal courtroom to orchestrating a three-year identity fraud operation. Prosecutors said from October 2020 to October 2023, Chapman stole the identities of more than 70 U.S. citizens and used fake employment records to place foreign IT workers in remote jobs at American companies.

To make it appear as though the foreign workers were based in the U.S., Chapman set up a “laptop farm” at her home, where computers were hosted and operated remotely by overseas employees. Employers believed their remote hires were inside the country, while many of the workers were operating from abroad, including North Korea.

How much money was involved?

The fraudulent workers earned more than $17.1 million in wages, according to prosecutors. Much of this income was falsely reported to the IRS and Social Security Administration in the names of actual U.S. citizens, leaving dozens of Americans with false tax liabilities.

Chapman and her co-conspirators also submitted more than 100 false documents to the Department of Homeland Security, further disguising the scheme.

How did the scheme impact U.S. businesses?

The Justice Department said more than 300 U.S. companies were affected by the fraud, including Fortune 500 corporations. In many cases, the fraudulent IT workers gained unauthorized access to internal company systems, raising concerns about potential data breaches and national security risks.

How was Chapman caught?

The FBI Counterintelligence Division, the FBI Phoenix Field Office and the IRS Criminal Investigation Division led the investigation. The case was prosecuted by the Justice Department’s Cyber and Counterintelligence Divisions, with assistance from federal agencies specializing in national security cyber threats.

What sentence is Chapman facing?

Chapman is scheduled for sentencing on June 16, 2025. Under her plea agreement, prosecutors are recommending 94 to 111 months in federal prison. A federal judge will determine the final sentence based on U.S. Sentencing Guidelines and statutory factors.