The US Department of Justice announced on Tuesday, October 13, that federal agents have taken action against North Korea for engaging in illegal online activities by infiltrating US companies using remote IT workers, stealing American citizens’ identities to raise funds. More than 40 residences were searched in Texas, resulting in the seizure of 187 laptops and other devices. Criminal charges have been brought against 14 individuals, with 10 coming from China and two being arrested American citizens.
The Department of Justice stated in a press release that the Federal Bureau of Investigation (FBI) conducted searches and enforcement actions in over 40 locations in Texas as part of Operation Lonestar Roundup, targeting residences suspected of operating as “laptop farms” for North Korean IT workers.
This operation took place between September 21 and 25, during which federal agents seized 187 laptops and other devices used by IT workers affiliated with the North Korean government. These workers, along with their accomplices in the US, fraudulently obtained remote IT jobs from American companies to raise funds to support North Korea’s weapon programs under international sanctions.
Investigators found that these North Korean technical personnel allegedly used a network of over a dozen fraudulent email accounts to facilitate their criminal activities.
The Department of Justice announced the arrest of two American citizens mentioned in the indictment – Michael James Bostelle from Pennsylvania and Juan Cecilio Pena Carrillo from Texas. The indictment includes charges of telecommunications fraud, money laundering, and identity theft.
The indictment accuses the two American citizens and their co-conspirators of carrying out a long-standing fraudulent scheme through which they obtained remote IT jobs from American companies, generating over $3 million in revenue.
Charges were also filed against 14 individuals, some of whom are located in China and involved in the scheme. Their names include Sun Sheng Ming, Pei Li Guang, Weng Shou Cheng, Han Guo Bin, Wang Jian Jun, Sheng Zhang Kun, Zhang Wei Ping, Zhang Li Ping, Yu Yang, and Jin Long. Two other defendants remain unidentified.
Assistant Attorney General for National Security John A. Eisenberg stated in the press release, “The rogue regime of North Korea exploits its widespread IT worker program for various illegal purposes, including fundraising for weapons that could potentially target the US or its allies. These schemes threaten the IT systems and data security of deceived American employers and leave many people as victims of identity theft. The National Security Division of the Department of Justice will work with our law enforcement partners to use all available means to track down anyone assisting North Korea to protect our national security.”
Northern District of Texas Federal Prosecutor Ryan Raybould also mentioned in the press release, “This investigation goes beyond fraud, involving a hostile foreign government using stolen identities and secret wireless access points set up within our country to infiltrate American companies.”
Raybould further noted that with each laptop farm dismantled by US authorities, a revenue source used by the North Korean government to fund its weapon programs is disrupted. He emphasized, “Operation Lonestar Roundup sends a clear message: we will not allow our enemies to exploit our businesses or compromise our national security.”
According to the press release, North Korea’s network scheme has impacted over 70 American companies across 17 states including Ohio and the District of Columbia, affecting various industries such as healthcare, communications, network support, retail, and manufacturing.