Ukrainian-Russian Dual Citizen Pleads Guilty to Running International Money Laundering Organization for Cybercriminals

Oleg Korniev, 42, a dual citizen of Ukraine and Russia, pleaded guilty today to running a sophisticated international money laundering organization that laundered millions of dollars stolen from United States victims by cybercriminals around the world. In total, this international criminal organization recruited over 15,000 U.S.-based money mules to launder at least $10 million stolen by hackers from over 750 U.S. bank accounts.

"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."

"Just because you are outside the borders of the United States does not mean you will get away with defrauding U.S. Citizens and businesses," said U.S. Attorney Russ Ferguson for the Western District of North Carolina. "We will work hard to bring you to justice, as we did in this case."

"For years, the FBI has worked tirelessly to unravel the layers of this international money laundering operation and bring Mr. Korniev to justice," said Special Agent in Charge Reid Davis of FBI North Carolina. "This case reflects the Bureau's enduring commitment to following the evidence - no matter how long it takes, how far it leads, or how deliberately criminals try to hide behind borders and technology. We will continue pursuing those who enable cybercriminals until every responsible individual is held to account."

According to court documents, Korniev was one of the leaders of Your Mule Cashout (YMCO). YMCO created, maintained, and operated an elaborate and sophisticated system of money mules and internet infrastructure that allowed computer hackers, who had stolen money from the bank accounts of U.S. companies, to conceal the thefts and transfer the stolen money to countries outside the U.S. YMCO's services operated through online infrastructure that allowed hackers to move the stolen money to countries primarily in Eastern Europe by paying YMCO a percentage of the money stolen.

YMCO provided its money laundering services through money mules who were U.S. residents deceived by YMCO into believing that they were working for legitimate companies and making genuine money transfers. YMCO falsely represented that the money mules' job was to receive payments from businesses into their personal bank accounts, withdraw the money, and then wire the funds to the fake company's partners overseas. The money mules instead processed the hackers' stolen proceeds and wired them out of the country to other YMCO conspirators. The money mules never received payment for their services.

Korniev helped develop YMCO's policies and procedures; managed, hired, and fired employees; rewarded and punished employees based on performance; and secured illegal services supporting YMCO. As part of his plea, Korniev admitted that YMCO was responsible for over $14.7 million in actual and intended losses by confirmed victims and that he intended to launder over $9.7 million from cybercriminals and did launder at least $7 million. Korniev also agreed to provide full restitution to known victims to compensate them for their actual losses as well as forfeit cash seized from him when he was arrested in the Republic of Georgia.

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. Sentencing will be set at a later date. He faces a minimum penalty of two years in prison and maximum penalty of 50 years in prison. A federal district court judge will determine Korniev's sentence after considering the U.S. Sentencing Guidelines and other factors.

Previously, four other individuals involved with YMCO were arrested overseas, extradited to the Western District of North Carolina, and pleaded guilty to conspiracy to commit money laundering. They received sentences ranging from around 37 months to 63 months in prison and the court ordered each defendant to pay over $9.1 million in restitution to numerous U.S. victims.

The FBI is investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division's Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Matthew Warren for the Western District of North Carolina are prosecuting the case. The Department of Justice's Office of International Affairs, the FBI Office of the Law Enforcement Attache in Tbilisi, and law enforcement authorities in Georgia, including the Prosecutor's Office of Georgia, provided significant assistance.

CCIPS investigates and prosecutes cybercrime and intellectual property (IP) crime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cyber and IP criminals, and court orders for the return of over $350 million in victim funds.