ARIZONA: An Arizona resident has been sentenced to over eight years in federal prison for orchestrating one of the largest North Korean-linked remote employment frauds ever prosecuted in the United States. Christina Marie Chapman, 50, of Litchfield Park, operated a covert laptop farm at her home, helping North Korean IT workers impersonate U.S.-based employees and gain access to 309 American companies.
According to the U.S. Department of Justice (DoJ), the fraud scheme laundered more than ₹142 crore ($17 million) to individuals abroad, including those in North Korea. The workers used stolen American identities to infiltrate companies across diverse sectors—technology, aerospace, automotive, media, and retail.
Chapman, sentenced to 102 months in prison and three years of supervised release, pleaded guilty in February 2025 to conspiracy to commit wire fraud, aggravated identity theft, and money laundering conspiracy. Officials said she assisted North Korean nationals in securing remote work by making it appear as if they were physically located in the U.S.
Laptop Shipments, Forged Checks, and Identity Theft
The investigation revealed that Chapman shipped 49 laptops and devices provided by U.S. firms to foreign locations, including a Chinese city bordering North Korea. These devices were used to run fraudulent operations under the guise of remote American workers.
She also forged payroll checks using the identities of 68 Americans, sending falsely earned wages through financial channels that misrepresented the source of funds. These earnings were reported to U.S. tax and social security agencies, adding further layers of deception.
Authorities seized over 90 laptops from Chapman’s home during a raid in October 2023. The operation was jointly led by the Federal Bureau of Investigation (FBI) and the IRS Criminal Investigation, with support from the Department of State.
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North Korea’s IT Tactics and U.S. Advisory Warnings
U.S. officials stated that such schemes provide funding for North Korea’s weapons program and pose a risk to national security. IT workers from North Korea reportedly maintained target lists of Fortune 500 employers, manipulating application processes to secure high-value contracts.
The FBI and State Department have issued updated advisories for HR departments and corporate security teams, urging heightened scrutiny of identity verification, employment history, and virtual interactions. Businesses are being encouraged to detect anomalies in video calls and AI-generated profiles to curb the exploitation of remote work ecosystems.