Companies Accused of Compromising National Security: Faces Up to 97.5 Years in Prison
Shocking Revelation Uncovered by IRS-CI and FBI Phoenix Field Office
The Internal Revenue Service (IRS) Criminal Investigation has accused several companies and individuals of compromising national security, allegedly allowing North Korean IT workers to operate undetected in the United States.
Scheme Involves Fake Identities and Accounts
According to the charges, the companies and individuals involved created fake identities and accounts on U.S.-based freelance IT job search platforms and money service transmitters. They then sold these accounts to overseas IT workers, including those from North Korea, allowing them to pose as legitimate workers and gain access to sensitive information.
Massive Network of Fake Identities Uncovered
The investigation uncovered a massive network of fake identities and accounts, with one individual alone managing over 870 “proxy” identities. The companies involved allegedly provided proxy accounts for three freelance U.S. IT hiring platforms and three different U.S.-based money service transmitters.
Accused Face Serious Charges and Consequences
The accused have been charged with various crimes, including:
- Conspiracy to defraud the United States
- Wire fraud
- Bank fraud
- Identity theft
- Laundering monetary instruments
If convicted, they face significant prison sentences, including up to 97.5 years in prison for one individual.
Investigation and Prosecution Efforts
The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are leading the investigation, with assistance from the FBI Chicago Field Office. The U.S. Attorney’s Offices for the District of Columbia, Arizona, and other jurisdictions are prosecuting the case.
Background on North Korea IT Worker Threat
This is not an isolated incident. In May 2022, the FBI, along with the Departments of State and Treasury, issued an advisory warning about the North Korea IT worker threat. An updated guidance was issued in October 2023 by the United States and South Korea, providing indicators to watch for consistent with North Korea IT worker fraud.
Important Takeaways
- The accused are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- This case highlights the serious consequences of compromising national security and the importance of protecting sensitive information from foreign threats.