Arizona woman pleads guilty in fraud scheme that benefited North Korea

PHOENIX — An Arizona woman pleaded guilty in a fraud scheme that generated millions of dollars for herself and for North Korea, authorities announced on Tuesday.

Christina Chapman, 48, ran an operation that helped foreign IT workers claim to be U.S. citizens and residents in order to obtain remote jobs, according to the U.S. Attorney’s Office for the District of Columbia. The woman from Litchfield Park helped these individuals work in IT positions at more than 300 U.S. companies which in turn generated more than $17 million in illegal revenue for herself and for North Korea.

She pleaded guilty on Tuesday to conspiracy to commit wire fraud, aggravated identity theft and conspiracy to launder monetary instruments. The Litchfield Park resident could face up to nine years in federal prison. A sentence ranging from 94 to 111 months in federal prison was recommended via the terms of the plea agreement. Her sentencing will be held on June 16 by U.S. District Court Judge Randolph D. Moss.

What did the Arizona woman do?

Chapman stole the identities of U.S. citizens and then used those identities to apply for remote jobs in IT. She used temporary staffing organizations and other contracting companies to help operate her scheme which ran from October 2020 to October 2023.

The 48-year-old received laptop computers from the U.S. companies and created what authorities deemed a “laptop farm” at her home, so the companies would believe the workers were working in the United States.

She also provided false documents to the Department of Homeland Security, and she falsely reported income to the IRS and Social Security Administration using the identities of those she stole.

Chapman’s actions resulted in more than 70 individuals having false tax liabilities created in their name with an equal number of identities also being compromised.

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