Department of Justice Announces Charges Against Individuals Involved in Identity Theft Scheme

Two Separate Cases Uncovered:

• Chapman Case: Allegations of Conspiring with Overseas IT Workers to Create False Identities

  • Over 300 U.S. companies affected by the scheme
  • Generated at least $6.8 million in revenue for overseas IT workers
  • Resulted in false tax liabilities for over 35 U.S. persons

• Didenko Case: Allegations of Operating a Website to Create and Rent False Identities

  • Managed over 871 “proxy” identities
  • Facilitated the operation of laptop farms in the United States

Alleged North Korean Involvement:

• Both Chapman and Didenko allegedly worked with North Korean IT workers to carry out these schemes
• Schemes consistent with a broader threat posed by North Korea’s use of IT workers for malicious activities

Charges and Penalties:

• Chapman faces charges including:
  • Conspiracy to defraud the United States
  • Conspiracy to commit wire fraud
  • Conspiracy to launder monetary instruments
  • Operating as an unlicensed money transmitting business
• Didenko faces charges including:
  • Conspiracy to commit identity theft
  • Conspiracy to launder monetary instruments

Potential Penalties:

• If convicted, Chapman could face a maximum penalty of 97.5 years in prison
• If convicted, Didenko could face up to 67.5 years in prison

Investigations:

• The FBI’s New York Field Office is investigating the Didenko case, with assistance from other field offices
• The IRS-CI Phoenix Field Office and the FBI Phoenix Field Office are investigating the Chapman case