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Defense contractor pleads guilty to aiding North Korean remote worker scheme

A defense contractor with top secret security clearance pleaded guilty to aiding North Korea’s remote worker scheme by allowing co-conspirators to use his identity to apply for jobs, including positions with national security implications, the Justice Department said Wednesday. 

John Allen Kurrle Jr. participated in a short-lived but prolific conspiracy that spanned at least 88 job applications at U.S.-based companies, resulting in nine job offers, according to court records.

The 62-year-old allowed co-conspirators to use his identity and government clearance for prospective sensitive work, often with U.S. government contractors. The nine job offers Kurrle’s co-conspirators received between June and October 2025 had annual salary ranges of $120,000 to $190,000.

The scheme had a limited success rate. The longest and most lucrative job a co-conspirator landed under Kurrle’s identity lasted about three weeks, netting a total pay of $4,800.

His identity was also used to gain employment as a software engineer at a Ventura, California-based company to work on a generative AI project for a component of the U.S. military. The company sent a laptop to Kurrle’s residence in Gainesville, Virginia, where he received and hosted laptops shipped by multiple victim companies, enabling co-conspirators to remotely access the devices from outside the United States.

Yet, during a video call to verify employment eligibility, the company noticed that the person who appeared on the video call did not match Kurrle’s age or physical characteristics, according to court records. The unnamed company terminated the employment of Kurrle’s co-conspirator before he did any work on the military contract and Kurrle shipped the laptop back to the company. 

The company paid Kurrle’s co-conspirator almost $2,200 for 32 hours of onboarding, which Kurrle is now ordered to pay in restitution along with the $4,800 received from the other company. 

Kurrle also, as part of his plea agreement, admitted to using the identity of a third person, without their consent, to apply for some remote work positions. He doesn’t dispute that the scheme likely benefitted North Korea, but claims he wasn’t aware of the connections to North Korea during the duration of his involvement in the conspiracy.

Michael Barnhart, nation state investigator at DTEX, said researchers previously identified Kurrle as a facilitator for North Korea’s remote worker scheme. Yet, until recently, he wasn’t sure if Kurrle was a victim or impersonated. 

The case underscores North Korea’s efforts to gain access to roles with a strategic intelligence requirement, as it focuses on contractor roles because those present the path of least resistance.

Kurrle joins a growing list of people who have been charged or jailed for supporting the North Korea regime’s scheme that generates hundreds of millions of dollars annually for the country’s military and organizations involved in its weapons programs.

Authorities have been cracking down on the malicious insider activity by seizing cryptocurrency linked to the theft, and targeting U.S.-based facilitators who provided forged or stolen identities and hosted laptop farms for North Korean operatives. 

Some of that money is also funneling through a web of front companies and intermediaries, including sanctioned entities, that partly fund Russia’s war effort against Ukraine, DTEX said in a report in July. This includes manufacturing weapons and supplying them to Russia’s military, according to the security firm.

The countermeasures are stacking up, but the scheme is widespread and has infiltrated an undetermined number of businesses, including hundreds of Fortune 500 companies.

Federal judges previously sentenced other people to prison for their involvement in the scheme, including Matthew Issac Knoot and Erick Ntekereze Prince; Keija Wang and Zhenxing Wang; Audricus Phagnasay, Jason Salazar and Alexander Paul Travis; Oleksandr Didenko and Christina Chapman. 

Kurrle pleaded guilty to conspiracy to commit wire fraud and faces up to 20 years in prison upon sentencing, which is currently scheduled for Jan. 28, 2027.

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North Korea’s IT worker scheme funds Russia’s war effort

The people orchestrating North Korea’s IT worker scheme are funneling money through a web of front companies and intermediaries, including sanctioned entities, that partly fund Russia’s war effort against Ukraine, DTEX said in a report Tuesday.

The security firm’s research shows that the scheme is moving beyond funding the country’s weapons program and into a bigger pool that supports many of the regime’s objectives. This includes manufacturing weapons and supplying them to Russia’s military, according to DTEX.

“When we think IT workers, we typically think head down, get your money, support the weapons program,” Michael Barnhart, nation state investigator at DTEX and lead author of the report, told CyberScoop.

“It’s a broad cover-all statement when we say it’s supplying the weapons program,” he said. “That’s the predominant place it goes,” but many other domestic programs and entities tasked with other projects are taking cuts from that pool of money as well. 

Barnhart corroborated previously leaked data from an internal North Korean payment server, which included 390 IT worker accounts, chat logs and transaction data.

He mapped the transactions to organizations that received those funds, including multiple sanctioned entities: Sobaeksu, Saenal, and Songkwang. 

The money trail also showed $1.97 million in payments from North Korean IT workers between December 2025 and February 2026 flowing directly through Korea Ryonbong General Corp, a sanctioned defense entity that procures weapons for the regime’s military programs.

Western officials previously reported that North Korea provided ammunition and weapons to Russia in 2023, and in the fall of 2024 sent upwards of 15,000 soldiers to fight alongside Russian troops, according to the Council on Foreign Relations.

“This is a consequence that is often overlooked,” Barnhart wrote in the report. “Revenue from the IT worker stream does not stop at a resume scam or a payroll-abuse story. It can feed a larger DPRK system that supports sanctioned entities, domestic state needs, and a Russia war effort that is actively consuming all facets of North Korean weapons and military support.” 

Data from the internal North Korean payment server, which was first published by ZachXBT in April, is controlled by “PC-1234,” a single administrator that DTEX has been tracking for a while. The wallet and its cluster of activity remains active, Barnhart said. 

The three months of previous activity attributed to the wallet amounted to more than $2.84 million, which then flowed upward into dozens of organizations. 

“It’s not a top-down funded regime. It’s a bottom-up,” Barnhart said. “Everyone makes money at the bottom and then they take a tiny cut, and then the money goes upwards to what we just blanketly say is the weapons program. But really, it can go a lot more places.”

The post North Korea’s IT worker scheme funds Russia’s war effort appeared first on CyberScoop.

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