The Department of Justice said Korniev oversaw an international network that recruited more than 15,000 U.S.-based “money mules” to help launder over $10 million in stolen proceeds.
WASHINGTON — A Russian-Ukrainian national has pleaded guilty to multiple charges stemming from an international money laundering operation that used thousands of people in the United States to move funds stolen from American bank accounts.
Federal prosecutors identified the defendant as 42-year-old Oleg Korniev, a dual citizen of Ukraine and Russia. Authorities arrested him in Georgia, though it was not immediately clear whether he faced prosecution there before being transferred to the United States.
According to the DOJ, Korniev allegedly directed a global network that recruited more than 15,000 “mules” across the U.S. These participants received and transferred over $10 million stolen by hackers, helping disguise the money’s origins and make it more difficult for investigators to trace.
“Money mules play crucial roles in cybercrime, so the Justice Department pursues mules and their recruiters wherever they operate and however long it takes,” Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said in a statement. “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 an organization called Your Mule Cashout, or YMCO. The group allegedly helped cybercriminals conceal money stolen from U.S. businesses before transferring the proceeds overseas.
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Many of the U.S.-based participants reportedly believed they had been hired by legitimate companies to process routine payments. They were instructed to receive funds in their personal bank accounts, withdraw the money and send it by wire to purported business partners connected to the fake companies.
The DOJ said the so-called employees were not paid for their work. Instead, YMCO allegedly kept a portion of the stolen funds as compensation for moving and laundering the money.
Under a plea agreement, 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.
Korniev also acknowledged that YMCO was tied to more than $14.7 million in actual and anticipated losses involving confirmed cybercrime victims. He admitted personal responsibility for laundering at least $7 million.
The guilty plea is the latest development in the prosecution of YMCO members, according to federal officials. Four other alleged participants were arrested abroad and extradited to the U.S., where they were sentenced to prison terms ranging from approximately 37 months to 63 months.
