Key facts
- Two Americans, Michael James Bostelle and Juan Ceclilio Pena Carrillo, were arrested for allegedly helping North Korean IT workers.
- The scheme involved identity theft and fraudulent employment at U.S. companies to generate revenue for North Korea.
- The FBI seized approximately 187 laptops and devices from over 40 residences in Texas.
- The operation impacted more than 70 U.S. companies and compromised the identities of 25 Americans.
- The scheme generated at least $3 million in revenue for the overseas IT workers.
- Ten individuals based in China were also charged in connection with the operation.
The U.S. Department of Justice announced on Tuesday the arrests of two Americans, Michael James Bostelle of Pennsylvania and Juan Ceclilio Pena Carrillo of Texas, for their alleged roles in a scheme to help North Korean IT workers obtain fraudulent employment and steal identities at U.S. companies. The operation aimed to generate funds for the North Korean government.
According to the DOJ, the scheme involved U.S. individuals, including Bostelle and Pena Carrillo, allowing their names and personal information to be used to host laptops from U.S. victim companies in their homes, creating the appearance that North Korean workers were legitimate employees operating within the U.S. Tey Michael Nolte was named in the indictment for allegedly recruiting, managing, and training these Americans, along with at least four others.
Between September 21 and September 25, the FBI conducted searches at over 40 residences in Texas identified as "laptop farms" and seized approximately 187 laptops and other devices. The indictment also charged ten individuals based in China for their involvement in directing the operation.
The DOJ stated that the "massive" fraud impacted more than 70 U.S. companies, compromised the identities of 25 Americans, and sent false information to multiple U.S. government agencies. The operation generated at least $3 million in revenue for the overseas IT workers. The U.S. government has previously warned about North Koreans surreptitiously gaining employment at U.S. companies to raise money, access networks, and steal data.