Nashville Man Accused of Aiding North Korean Weapons Program through Fraudulent Tech Employment Scheme

Nashville Man Indicted for Aiding North Korea’s Weapons Program

NASHVILLE, Tenn. — A local man is in serious legal trouble after being indicted for allegedly helping North Korea fund its weapons program through a fraudulent technology employment scheme. Matthew Isaac Knoot, a 38-year-old from Nashville, faces multiple federal charges for his role in this elaborate operation.

Fraudulent Employment Scheme

According to the United States Attorney’s Office in the Middle District of Tennessee, Knoot is accused of using what is referred to as a “Laptop Farm”. This operation was designed to deceive American and British companies into thinking they were hiring remote IT workers based in the U.S. However, these workers were actually from North Korea.

Court documents reveal that Knoot helped individuals secure fraudulent identities, enabling them to impersonate U.S. citizens to obtain these jobs. He allegedly had multiple company laptops at his residences, facilitated unauthorized downloads and installations of software, and collaborated in laundering the payments made for the remote IT services.

Connection to North Korea’s Weapons Program

The indictment specifies that Knoot’s activities contributed to generating revenue for accounts linked to both North Korean and Chinese actors, including the Democratic People’s Republic of Korea’s (DPRK) illicit weapons program. The weapons program is notorious for its involvement in developing weapons of mass destruction.

“North Korea has sent thousands of highly skilled IT workers around the world to deceive businesses and evade international sanctions so that it can continue funding its dangerous weapons program,” stated United States Attorney Henry C. Leventis. He emphasized that this indictment represents a commitment to safeguard national security interests.

Workers from North Korea seeking employment abroad typically work in regions such as China and Russia. They present themselves as highly-skilled freelance IT professionals, raking in pay that can reach up to $300,000 annually. This approach could lead to hundreds of millions of dollars being funneled to the North Korean Ministry of Defense and other entities directly associated with the nation’s weapons development.

Government Warnings

Officials have voiced concerns about the implications of this fraudulent scheme. Assistant Attorney General Matthew G. Olsen pointed out that Knoot helped mislead U.S. companies into hiring foreign IT workers whose earnings were ultimately channeled back into North Korea’s weapons efforts.

“This indictment serves as a serious warning for U.S. businesses that hire remote IT workers,” Olsen noted, highlighting the need for companies to be increasingly cautious during their hiring practices to avoid being duped.

Details of the Indictment

Knoot was officially indicted on Thursday for his suspected participation in the scheme that allowed foreign IT workers to secure remote positions with American companies. His actions reportedly resulted in hundreds of thousands of dollars in damages to various U.S. media, technology, and financial firms.

The indictment suggests that Knoot ran his “laptop farm” from approximately July 2022 until August 2023. He now faces several serious charges, including:

• Conspiracy to cause damage to protected computers
• Conspiracy to launder monetary instruments
• Conspiracy to commit wire fraud
• Intentional damage to protected computers
• Aggravated identity theft
• Conspiracy to cause the unlawful employment of aliens

If convicted on these charges, Knoot could face up to 20 years in prison, which includes a mandatory minimum sentence of two years for the aggravated identity theft charge.

Ongoing Investigation

The case is currently under investigation by the FBI’s Memphis Field Office and the Nashville Resident Agency. As this situation unfolds, authorities continue to emphasize the importance of vigilance from companies hiring remote employees, especially when it involves foreign workers.

As discussions about cybersecurity and national security increasingly dominate the headlines, this indictment illustrates the serious risks and consequences that can arise from fraudulent activities. Companies are urged to inspect their hiring procedures to prevent falling victim to schemes that could inadvertently support hostile foreign entities.