Christina Marie Chapman, a 48-year-old woman from Litchfield Park, Arizona, has pleaded guilty in federal court for her role in a scheme that funneled millions of dollars to North Korea. Over the course of three years, Chapman and her co-conspirators helped overseas IT workers pretend to be U.S. citizens so they could illegally secure remote IT jobs in the United States. The scheme involved more than 300 American companies, including some of the nation’s largest corporations.
The fraudulent operation, which ran from October 2020 to October 2023, generated over $17 million in revenue. According to prosecutors, Chapman and her team stole the identities of U.S. citizens to pull off the elaborate plan. Many unsuspecting Americans had their personal information, such as Social Security numbers, used to create fake job applications. These applications were then submitted to U.S. companies, which hired the overseas workers, believing they were legitimate employees living in the United States.
Chapman’s plea agreement, announced on February 12, 2025, outlines her crimes, including conspiracy to commit wire fraud, aggravated identity theft, and money laundering. She now faces a prison sentence of up to 111 months (over nine years), pending her sentencing hearing scheduled for June 16, 2025.
Dr. Alexander Baldonado Convicted in $24M Medicare Fraud Scheme
How the Scheme Worked
At the heart of the operation was an elaborate setup designed to fool U.S. companies into believing they were hiring American workers. Chapman used stolen identities to secure jobs for overseas IT professionals, who were primarily based in foreign countries. To make the deception convincing, Chapman went to extraordinary lengths.
She created a “laptop farm” in her Arizona home, where she hosted computers sent by the companies. This setup made it appear that the overseas workers were logging in from within the United States. With this system in place, the foreign workers gained access to sensitive internal systems of the companies that hired them, putting corporate data at risk.
Chapman and her conspirators even submitted false documents to the Department of Homeland Security (DHS) to make the workers’ applications look authentic. They reported fake tax information to the Internal Revenue Service (IRS) and Social Security Administration in the names of real Americans, creating serious legal and financial problems for those whose identities had been stolen.
The scheme didn’t just impact companies—it caused significant harm to individuals as well. Over 70 Americans had their identities compromised, leading to false tax liabilities in their names. Many may have unknowingly become victims of fraud without understanding how their personal information was used.
The Damage to Companies and Individuals
The consequences of Chapman’s actions were far-reaching. More than 300 U.S. companies unknowingly hired overseas workers involved in the scheme. Many of these companies were Fortune 500 firms, meaning the fraudulent workers gained access to the systems of some of the most prominent businesses in the country.
The financial toll was staggering. While the overseas workers earned over $17.1 million from the jobs they secured, much of the money was sent back to North Korea. Prosecutors revealed that the Democratic People’s Republic of Korea (DPRK) benefited financially from the scheme, making this case particularly alarming from a national security perspective.
Fraud Investigator Sentenced: Betraying Homeless Victims for Personal Gain
Investigation and Legal Proceedings
Federal authorities launched an extensive investigation into the fraud. The FBI Counterintelligence Division, along with its Phoenix and Chicago field offices, led the effort. They worked closely with the IRS Criminal Investigation unit and the U.S. Attorney’s Office for the District of Arizona to uncover the scope of the scheme. It was ultimately prosecuted by a team of federal attorneys, including experts from the Justice Department’s Computer Crime and Intellectual Property Section and the National Security Division’s Cyber Section.
The investigation revealed that Chapman had repeatedly submitted false information to the DHS—more than 100 times—and that her actions created substantial risks for national security, corporate security, and personal privacy.
In addition to her role as the scheme’s mastermind, Chapman personally benefited from the illicit operation. By hosting the laptop farm at her home and managing the flow of false information, she played a key role in ensuring the operation’s success. However, her actions also left a trail of evidence that investigators were able to use to build their case against her.
Now, with her guilty plea, Chapman awaits sentencing. Her actions serve as a stark reminder of how one individual’s greed can cause widespread harm—not just to corporations, but to ordinary citizens and national security as well.
