Oleg Korniev, a 42-year-old dual citizen of Ukraine and Russia, entered an Oleg Korniev guilty plea on Oct. 8 in federal court over his role in an international operation that moved cybercrime proceeds out of the United States. The Justice Department said Korniev was one of the leaders of Your Mule Cashout, or YMCO, and that sentencing has yet to be scheduled.
Korniev pleaded guilty to conspiracy to commit money laundering, money laundering, conspiracy to commit computer fraud, conspiracy to commit access-device theft and aggravated identity theft, according to the Justice Department.
The statutory range cited by prosecutors runs from two to 50 years in prison. That is not a sentence: a federal judge will set the penalty after considering the federal Sentencing Guidelines and other factors.
How did YMCO use fake jobs to move stolen money?
According to court documents summarized by the Justice Department, YMCO built online systems for hackers who had stolen money from U.S. company bank accounts. The hackers paid YMCO a percentage to hide the source of the funds and send them abroad, primarily to Eastern Europe.
The group recruited U.S. residents through supposed jobs at legitimate companies, prosecutors said. Workers were told to accept business payments into their personal bank accounts, withdraw the money and wire it to overseas partners. In fact, the transfers moved stolen funds to other people in the network. The Justice Department said the workers received no payment for the transfers.
The FBI defines a money mule as someone who transfers illegally obtained money for another person. Such intermediaries put distance between the theft and the people directing it, making the transaction trail harder to follow. Some participants know what they are doing; others are deceived, the FBI says.
Why do the dollar figures in the case differ?
They measure different parts of the operation. At the organization level, the Justice Department said YMCO recruited more than 15,000 U.S.-based money mules and laundered at least $10 million stolen from more than 750 U.S. bank accounts.
In his plea, Korniev admitted that YMCO caused more than $14.7 million in actual and intended losses to confirmed victims. He admitted he intended to launder more than $9.7 million and actually laundered at least $7 million, the department said.
Prosecutors said Korniev helped write YMCO procedures, manage staff, and obtain illegal services for the group. He also agreed to repay known victims in full and forfeit cash seized during his arrest in the Republic of Georgia.
Four other people tied to YMCO had previously been arrested overseas, extradited to the Western District of North Carolina and convicted of money-laundering conspiracy. They received prison terms of about 37 to 63 months, and each was ordered to pay more than $9.1 million in restitution, according to the Justice Department.
What is a money-mule job scam red flag?
The FBI warns that a purported employer asking a worker to use a personal bank account to receive and forward money is a key warning sign. It says a legitimate company will not ask an employee to do that, and that acting as a money mule can bring criminal exposure even when the participant says they did not understand the larger scheme.
This story draws on original reporting from The Record.
