Michael James Bostelle of Pennsylvania and Juan Cecilio Pena Carrillo of Texas face charges of wire fraud, money laundering and identity theft, according to the DOJ, Reuters reported.
As part of the investigation, the FBI searched more than 40 residences in Texas between Sept. 21 and Sept. 25 that authorities suspected were operating as “laptop farms” for North Korean IT workers. Agents seized approximately 187 laptops and other electronic devices allegedly used in the scheme.
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An indictment unsealed Tuesday also charged 10 individuals based in China over their alleged roles in the operation. The indictment named Tey Michael Nolte, who was not charged, and alleged that he recruited, managed and trained Bostelle and other Americans involved in the scheme.
According to the DOJ, operators based in China directed Pena, Nolte and at least four other Americans. The Americans allegedly allowed their names and personal information to be used to make North Korean workers appear to be legitimate employees based in the United States.
The arrangement reportedly involved receiving and hosting laptops belonging to US companies at residential addresses, helping create the impression that employees were working domestically rather than overseas.
The alleged operation affected more than 70 US companies, compromised the identities of 25 Americans and resulted in false information being submitted to multiple US government agencies, the DOJ said. It generated at least $3 million in revenue for the overseas IT workers, according to authorities.
The US government has repeatedly warned that North Korean operatives seek employment at American companies to generate funds for Pyongyang, gain access to corporate networks and steal sensitive data.
Attorneys for Pena and Bostelle could not immediately be reached for comment, Reuters reported.
