DOJ arrests two, seizes 187 devices in North Korean laptop farm case in Texas

Mixed · 2The US Department of Justice announced on Tuesday 13 October the arrests of two Americans accused of helping North Korean IT workers steal identities and obtain fraudulent jobs at US companies to earn money for the North Korean government. 1 2 Mixed · 2The two, Michael James Bostelle of Pennsylvania and Juan Ceclilio Pena Carrillo of Texas, face charges of wire fraud, money laundering and identity theft, the DOJ said. 1 2 Mixed · 2According to the DOJ, the FBI conducted searches and took other action between 21 and 25 September at more than 40 Texas residences thought to be operating as "laptop farms" for North Korean IT workers, and seized roughly 187 laptops and other devices. 1 2

Mixed · 2The indictment unsealed Tuesday also charges ten China-based defendants: 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. 1 2 Centre · 1It says the China-based operators directed Pena, Tey Michael Nolte and at least four other Americans; Nolte was named in the indictment but not charged. 1 Mixed · 2Nolte allegedly recruited, managed and trained Bostelle and other Americans, who let their names and personal information be used in exchange for proceeds, and who received and hosted laptops belonging to victim companies at their homes so the North Koreans appeared to be legitimate US-based employees. 1 2

Mixed · 2The DOJ described the fraud as "massive": it affected more than 70 US companies, compromised the identities of 25 Americans, sent false information to multiple US government agencies and generated at least $3 million in revenue for the overseas IT workers. 1 2 Mixed · 2The US government has for years warned that North Koreans covertly take jobs at US companies to raise money for their government, access company networks and steal data. Attorneys for Pena and Bostelle could not immediately be reached for comment. 1 2