WASHINGTON, D.C. – A 48-year-old Arizona woman has pleaded guilty to her role in a fraud scheme that helped overseas IT workers pose as U.S. citizens while working remotely for over 300 U.S. companies, generating more than $17 million in illicit revenue—some of which benefited North Korea, according to the U.S. Attorney’s Office for the District of Columbia.
Christina Marie Chapman, of Litchfield Park, Arizona, pleaded guilty in U.S. District Court in Washington, D.C., to conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments.
Her sentencing is scheduled for June 16, 2025, before U.S. District Court Judge Randolph D. Moss. Under the plea agreement, prosecutors and the defense will jointly recommend a sentence of 94 to 111 months in federal prison.
How the Fraud Scheme Worked
Between October 2020 and October 2023, Chapman worked with overseas IT workers to:
- Steal the identities of U.S. citizens to apply for remote IT jobs.
- Submit false documents to the Department of Homeland Security (DHS) to make the workers appear to be U.S.-based.
- Host a “laptop farm” at her home in Arizona, where company-provided computers were kept to trick employersinto believing the workers were in the U.S.
Because of Chapman’s assistance, foreign IT workers gained access to the internal systems of hundreds of American companies, including Fortune 500 corporations.
Millions in Fraudulent Earnings Linked to North Korea
The fraudulent workers earned more than $17.1 million, much of which was falsely reported to the IRS and Social Security Administration under the names of the stolen identities.
Impact of the Scheme
- Over 300 U.S. companies were affected.
- More than 70 U.S. identities were compromised.
- Over 100 instances of false information were submitted to DHS.
- Dozens of Americans faced false tax liabilities.
Federal Investigation and Prosecution
The FBI Counterintelligence Division, FBI Phoenix Field Office, U.S. Attorney’s Office for the District of Arizona, and IRS Criminal Investigation (Phoenix Field Office) led the investigation, with assistance from the FBI Chicago Field Office.
Assistant U.S. Attorneys Joshua Rothstein, Karen Seifert, and Thomas Gillice, along with Trial Attorney Ashley Pungello of the Computer Crime and Intellectual Property Section, are prosecuting the case. Trial Attorney Gregory J. Nicosia Jr. of the National Security Cyber Section also contributed.
Chapman faces up to nine years in prison when she is sentenced in June.
