Arizona Woman Sentenced to Over 8 Years for Role in $17M North Korean IT Fraud Scheme

The Case in Brief

According to the Department of Justice (DOJ) release, Christina Marie Chapman, 50, of Litchfield Park, Arizona, was sentenced to 102 months in prison for her role in a conspiracy that enabled North Korean IT workers to pose as U.S. citizens and secure remote jobs with American companies.

Chapman pleaded guilty in February 2025 to wire fraud, aggravated identity theft, and money laundering conspiracy. The DOJ stated the operation generated over $17 million in illegal earnings for Chapman and the Democratic People’s Republic of Korea (DPRK).

Photo: U.S. Attorney’s Office, District of Columbia

Inside the Fraud Operation

The scheme, active from 2020 to 2023, relied on a “laptop farm” Chapman operated from her home, where she managed computers issued by American companies to workers falsely claiming to be U.S.-based, according to the DOJ. Each device was tagged with the name of the impersonated employee and the company, supporting a web of falsified identities used to infiltrate 309 U.S. and two international firms.

The DOJ noted that Chapman submitted over 100 fraudulent filings to the Department of Homeland Security, shipped 49 laptops abroad—including to a city near the North Korea-China border—and helped funnel wages through U.S. banks to overseas actors.

Photo: U.S. Attorney’s Office, District of Columbia

Sentencing and Consequences

As mentioned in the DOJ release, U.S. District Judge Randolph D. Moss also ordered Chapman to serve three years of supervised release and imposed a forfeiture of $284,555.92. She was also ordered to pay a judgment of $176,850. Investigators recovered more than 90 laptops from her home during an October 2023 search.

The DOJ confirmed that the fraud ring used identities stolen from 68 Americans, exposing them to false tax liabilities and disrupting payroll systems at major corporations.

National Security and Policy Warnings

“North Korea is not just a threat to the homeland from afar. It is an enemy within,” said U.S. Attorney Jeanine Ferris Pirro, quoted in the release. She warned that weak employment verification systems allowed hostile actors to exploit remote hiring practices, urging corporations to implement stricter controls.

Targets of the scheme included a top-five television network, a Silicon Valley tech company, a defense manufacturer, and a luxury retailer. According to the DOJ, attempts to breach federal agencies were unsuccessful.

FBI and IRS Investigations

FBI Assistant Director Roman Rozhavsky emphasized the role of domestic enablers like Chapman, stating in the release that “even an adversary as sophisticated as the North Korean government can’t succeed without the assistance of willing U.S. citizens.” The FBI led the investigation with assistance from the IRS Criminal Investigation Phoenix Field Office.

The Bigger Picture

A 2024 UN report cited by the DOJ estimates that North Korea’s global IT labor network generates up to $600 million annually, funding illicit programs including its nuclear arsenal. This case marks one of the largest prosecutions involving DPRK-affiliated tech fraud and exposes growing vulnerabilities in U.S. cyber infrastructure.

Follow Virginia Times for regular news updates. Stay informed with the latest headlines, breaking stories, and in-depth reporting from around the world.