Scheme

SEOUL, April 16 (UPI) — Two U.S. nationals were sentenced to federal prison for helping North Korean operatives obtain remote IT jobs with American companies in a scheme that generated millions of dollars for Pyongyang’s weapons programs, the Justice Department said Wednesday.

New Jersey residents Kejia “Tony” Wang, 42, and Zhenxing “Danny” Wang, 39, operated so-called “laptop farms” that made it appear as though overseas workers were based in the United States, allowing North Korean IT personnel to secure jobs using stolen American identities.

The scheme used identities from at least 80 individuals and generated more than $5 million in revenue for the North Korean government, the department said in a press release.

Kejia Wang was sentenced to nine years in prison by U.S. Senior District Judge Nathaniel M. Gorton in federal court in Boston, followed by three years of supervised release, after pleading guilty to conspiracy charges including wire fraud, money laundering and identity theft.

Zhenxing Wang was sentenced to seven years and eight months in prison by the same court, followed by three years of supervised release, after pleading guilty to conspiracy to commit fraud and money laundering. He was also ordered to pay $200,000 in restitution.

The two were additionally ordered to forfeit $600,000 in proceeds tied to the operation.

“This case exposes a sophisticated scheme that exploited stolen American identities and U.S. companies to generate millions of dollars for a hostile foreign regime,” U.S. Attorney for Massachusetts Leah B. Foley said. “By operating so-called ‘laptop farms,’ these defendants enabled overseas actors to infiltrate U.S. businesses, access sensitive data and undermine our economic and national security.”

Prosecutors said the scheme ran from about 2021 through October 2024, with the defendants and their co-conspirators using stolen identities to obtain remote jobs at more than 100 U.S. companies, including several Fortune 500 firms and a defense contractor.

Companies incurred at least $3 million in losses from legal fees, network remediation and other damages, the Justice Department said.

The operation also exposed sensitive data, including export-controlled information governed by International Traffic in Arms Regulations, after an overseas co-conspirator accessed systems belonging to a California-based defense contractor, according to court documents.

Kejia Wang acted as the U.S.-based manager for the operation, overseeing multiple facilitators who hosted hundreds of company-issued laptops at their residences. He also traveled to China in 2023 to meet overseas co-conspirators, including a North Korean national, according to court filings.

Zhenxing Wang was among the facilitators who hosted company laptops and enabled remote access by connecting them to specialized hardware devices.

The two were charged in June 2025 alongside eight foreign nationals who remain at large and are wanted by the FBI.

In a related move, the U.S. State Department on Wednesday offered a reward of up to $5 million for information on the eight co-conspirators, as well as one suspected North Korean IT worker, leading to the disruption of the scheme’s financial networks.

The case comes as North Korea, under heavy international sanctions, has increasingly turned to cybercrime and illicit IT work to generate revenue for its nuclear and ballistic missile programs.

An October report by the 11-country Multilateral Sanctions Monitoring Team described North Korea’s cyber operations as “a full-spectrum national program operating at a sophistication approaching the cyber programs of China and Russia.”

The report said nearly all of the country’s cyber activity, illicit IT work and financial operations are carried out under the direction of entities sanctioned by the United Nations over Pyongyang’s weapons programs.

The U.S. Treasury Department said in November that North Korea had stolen more than $3 billion over the previous three years through cyberattacks on financial institutions and cryptocurrency platforms.

A 2022 Treasury advisory estimated that North Korean IT workers generate hundreds of millions of dollars annually, with some individuals earning more than $300,000 a year.

The Justice Department has stepped up enforcement as part of an inter-agency effort in recent years, announcing multiple related prosecutions, including the sentencing of three Americans in March and a Ukrainian national in February.

Former clerk Tina Peters has become a cause celebre for the election denial movement and President Donald Trump.

An appeals court in the state of Colorado has ordered the resentencing of Tina Peters, a former county clerk convicted of involvement in an election meddling scheme in the United States.

The court overturned Peters’s nine-year prison sentence on Thursday, but not her conviction for helping to tamper with voting machines after the 2020 presidential race.

Her case has become a cause celebre for President Donald Trump and the election denial movement, after it emerged that she was seeking evidence to support Trump’s false claim that his 2020 loss was due to massive fraud.

In Thursday’s decision, the three-judge appeals panel ruled that a lower court had considered Peters’s personal beliefs when deciding upon a punishment, thereby rendering the sentence improper.

“The trial court’s comments about Peters’s belief in the existence of 2020 election fraud went beyond relevant considerations for her sentencing,” the appeals court wrote.

The panel cited comments from Judge Matthew Barrett, who blasted Peters as a “charlatan” promoting “snake oil” claims.

“Her offence was not her belief, however misguided the trial court deemed it to be, in the existence of such election fraud,” the appeals court said. “It was her deceitful actions in her attempt to gather evidence of such fraud.”

Peters was convicted in August 2024 for helping someone from outside the government gain access to the Mesa County election system and make copies.

That person was affiliated with efforts to overturn Trump’s 2020 loss, and the copies they obtained were then shared on social media.

False claims that the 2020 election was marred by massive fraud have been a persistent fixation for Trump and his allies, even after his successful re-election in 2024.

Trump’s efforts to remain in office after his 2020 defeat were the subject of a 2023 criminal indictment brought by former special counsel Jack Smith.

He alleged that Trump led a criminal conspiracy to undermine the election process and rally supporters to overturn the results. Those charges, however, were ultimately dropped when Trump took office again in 2025, as the US Justice Department has a policy against prosecuting sitting presidents.

Since his inauguration, Trump has continued to push the claims he won the 2020 race. He has also used his allegations of fraud to demand greater control over the country’s election infrastructure in advance of the upcoming 2026 midterm elections.

In December, the president pardoned Peters, even though she was not in federal custody, and the presidential power of pardon does not extend to state crimes.

The appeals court panel confirmed on Thursday that Trump’s pardon had no impact on state offences.

“We have found no instance where the presidential pardon power has been stretched in such a way as to invade an individual state’s sovereignty,” the panel said.

State Governor Jared Polis suggested last month that he could consider clemency for Peters.

DENVER — A Colorado appeals court ruled Thursday that a former county clerk convicted in a scheme that sought to prove fraud in the 2020 presidential election should be resentenced because a judge wrongly punished her for statements protected as free speech.

Tina Peters is serving a nine-year prison term after being convicted of state crimes for sneaking in an outside computer expert to make a copy of her county’s election computer system during a software update in 2021. A photo and video of confidential voting system passwords were later posted on social media and a conservative website.

Calls for Peters’ release have become a cause celebre in the election conspiracy movement. President Trump has sought unsuccessfully to pardon Peters and pressured Colorado to set her free.

Judges on the Colorado Court of Appeals upheld her conviction in a 74-page ruling that rejected the notion that Trump has authority to pardon her state crimes. But they said a lower court judge should not have considered Peters’ continued promotion of election fraud conspiracies when he sentenced her in 2024.

One of Tina Peters’ lawyers, John Case, said the court’s ruling affirmed the importance of free speech.

“Tina Peters was punished for words that she used to criticize our insecure and illegal voting system,” Case said. “The decision affirms that people are free to speak what they believe in Colorado as well as the rest of the United States of America.”

Case said he would likely ask at resentencing for Peters to receive the approximately 540 days she’s served already. That would allow her to be freed.

Democratic Colorado Gov. Jared Polis, who has been considering granting clemency to Peters, praised the court’s decision for rejecting Trump’s pardon but upholding her free speech rights.

“This case has been very challenging and a true test of our resolve as a state to have a fair judicial system, not just for people we agree with but a fair system for Coloradans that we vehemently disagree with,” Polis said in statement.

Peters was the former clerk in Mesa County, in the far western part of Colorado, and convicted by jurors in the Republican stronghold that has supported Trump.

She was unapologetic when she was sentenced by Judge Matthew Barrett and insisted that she tried to unearth what she believed was fraud for the greater good. He ripped into her, calling her a “charlatan” who had used her position to “peddle snake oil.”

The appeals court found that Barrett violated her rights to free speech by punishing Peters for persistently alleging fraud in the 2020 election. They noted that because Peters is no longer serving as an election clerk, she can no longer engage in the conduct that led to her conviction.

“The trial court obviously erred by imposing sentence at least partially based on Peters’ protected speech,” Judge Ted Tow wrote in Thursday’s ruling.

The court sent Peters’ case back to a lower court for a judge to issue a new sentence.

Trump has threatened to take “harsh measures” against Colorado unless the state releases Peters. In February, Trump said Colorado was “suffering a big price” for refusing to release her.

Colorado Atty. Gen. Phil Weiser, a Democrat who is running for governor, has accused the Trump administration of waging a revenge campaign by choking off funds and ending federal programs over the state’s refusal to free Peters.

Weiser said in response to the ruling that the original sentence had been “fair and appropriate.”

“Whatever happens with her sentence, Tina Peters will always be a convicted felon who violated her duty as Mesa County clerk, put other lives at risk, and threatened our democracy. Nothing will remove that stain,” Weiser said in a statement.

The Justice Department inserted itself into Peters’ bid to be released while her state appeal was considered. The federal Bureau of Prisons also tried to get Peters moved to a federal prison. After both efforts failed, Trump in December announced a pardon for Peters.

However, the appeals court judges said they could find no prior example of a president pardoning someone for a state crime. And they rejected her attorney’s claims that Peters actions had been carried out while “defending a federal interest.”

“We have found no instance where the presidential pardon power has been stretched in such a way as to invade an individual state’s sovereignty,” they said, adding that the president’s pardon has “no impact” on the state’s case against Peters.

The Associated Press left messages with the White House for comment.

She was convicted of three counts of attempting to influence a public servant and one count each of conspiracy to commit criminal impersonation, first-degree official misconduct, violation of duty and failure to comply with the requirements of the secretary of state.

Peters’ lawyers didn’t deny that she used the security badge of a local man she pretended to hire to allow an associate of MyPillow CEO Mike Lindell to make a copy of the Dominion Voting Systems election computer server during an annual software update in 2021.

But they said she only wanted to preserve election data and find out whether any outside actor had accessed the system while ballots were being counted. They said she didn’t want the information made public.

Slevin and Brown write for the Associated Press.