The Department of Justice said Oleg Korniev ran an international network that recruited more than 15,000 “money mules” in the United States to launder over $10 million in stolen funds.
WASHINGTON — A Russian-Ukrainian man has pleaded guilty to multiple charges stemming from a multimillion-dollar money laundering operation that used thousands of U.S.-based “mules” to move money stolen from American bank accounts.
Federal officials said 42-year-old Oleg Korniev, a dual citizen of Ukraine and Russia, was arrested in Georgia. It was not immediately clear whether he was prosecuted there or in the United States.
According to the DOJ, Korniev led an alleged international operation that recruited more than 15,000 people in the U.S. to receive and transfer over $10 million stolen by hackers from American bank accounts. The transactions were intended to “clean” the money and make it more difficult to trace to criminal activity.
“Money mules play crucial roles in cybercrime, so the Justice Department pursues mules and their recruiters wherever they operate and however long it takes,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Alongside our international partners, we will dismantle criminal networks that attack Americans. No amount of distance or time puts these criminals beyond the reach of justice.”
Prosecutors said Korniev headed a group called Your Mule Cashout, or YMCO. The organization allegedly helped hackers conceal money stolen from U.S. companies and move it out of the country.
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Federal officials said thousands of U.S. “employees” thought they were working for legitimate companies and processing lawful payments. They were allegedly instructed to accept business payments into their personal bank accounts, withdraw the funds and wire the money to supposed partners of the fraudulent companies.
The DOJ said the money mules were not actually paid for their work. Instead, YMCO allegedly kept a portion of the stolen funds that passed through the network.
Under a plea agreement with prosecutors, Korniev admitted to conspiracy to commit money laundering, money laundering, conspiracy to commit computer fraud, conspiracy to commit access device theft and aggravated identity theft. He faces a potential prison sentence ranging from two to 50 years.
As part of the agreement, Korniev acknowledged that YMCO caused more than $14.7 million in actual and intended losses involving confirmed cybercrime victims. He also admitted personal responsibility for laundering at least $7 million.
The DOJ described Korniev’s case as the latest conviction involving YMCO. Four other members of the organization were arrested abroad, extradited to the United States and prosecuted. Their prison sentences ranged from approximately 37 months to 63 months.