- Arizona woman imprisoned for North Korea IT scam role
- The scheme generated $17M, stole 68 U.S. identities for crypto jobs.
- Chapman’s laptop farm deceived 300+ U.S. firms, including Fortune 500
A 102-month jail term was handed down to Christina. M. Chapman, a 50-year-old woman from Litchfield Park, Arizona, was sentenced for her role in a complex fraud. She assisted North Korean IT laborers to act as American citizens in order to work remotely in more than 300 American companies, including those in the cryptocurrency industry.
The scheme created more than 17 million dollars of illicit funds, most of which were redirected to the regime in North Korea. The practices of Chapman undermined the identities of 68 Americans and defrauded big companies, including Fortune 500 companies.
Laptop Farm Deception
Chapman worked at home, running a so-called laptop farm where she hosted company-issued computers to make it seem that employees based in North Korea were operating out of the U.S. She also delivered 49 laptops to other countries, such as China, where North Korea is situated, to advance the sham. In October 2023, more than 90 laptops were taken out of her house.
Source – Christina. M. Chapman laptop farm justice.gov
Source – Christina. M. Chapman laptop farm, justice.gov
She also made payroll checks and routed salaries through her bank accounts in the United States of America, laundering money to foreign agents. The North Korea IT fraud scheme was aimed at such industries as cryptocurrency, where remote work is quite typical, and the weaknesses of the hiring process were used.
According to U.S Attorney Jeanine Pirro, the activities of North Korea are dangerous to U.S businesses and American citizens, and their funds are used in financing the illicit programs of the regime. She stressed, This is a threat to Main Street.
Stolen Identities, Stolen Trust
The fraud took 68 identities of U.S. citizens and used them to get a jobs at such organizations as a giant television network and a Silicon Valley technology company. Fictitious documents were transmitted to the Department of Homeland Security, and false tax returns had affected more than 70 people.
After facing charges of money laundering, aggravated identity theft, and conspiracy to commit wire fraud, Chapman entered a guilty plea in February 2025. She said she did not know about dealing with North Koreans, but the prosecutors said she deliberately assisted the regime.
Assistant Director of the FBI Roman Rozhavsky observed that the strategies employed by North Korea depend on American traffickers such as Chapman. A clever enemy, he said, cannot do without willing coadjutors.
Two U.S. government agencies were also attacked by the scheme, but to no avail. The scale of the fraud highlights the increasing danger of North Korea’s IT fraud in teleworking.
National Security at Risk
The IT workers of North Korea have been penetrating industry and areas such as cryptocurrency, gaming, and AI using the disguise of other nationalities. In 2022, an advisory issued by the State Department pointed to their methods, citing their contribution to the weapons programs by the regime.
The operation Chapman, which was among the largest of its kind, brought millions that could help the nuclear ambitions of North Korea. A report by the United Nations estimates that there are 3,000 North Korean IT workers in several countries around the world, bringing the regime up to 600 million dollars every year.
The IRS Criminal Investigation Phoenix Field Office Special Agent in Charge Carissa Messick stated the importance of the case. She said there was no deception that could conceal our efforts to bring to book those who pose a threat to national security. Besides her jail sentence, Chapman will be required to forfeit 284,555 dollars that was to be given to North Korean operatives, and restitution of 176,850 dollars.
