Dual Citizen Pleads Guilty to Running International Money Laundering Network for Cybercriminals

A 42-year-old dual citizen of Ukraine and Russia has pleaded guilty to leading a massive international money laundering operation that processed millions of dollars for cybercriminals.

YMCO used more than 15,000 U.S. money mules

Oleg Korniev was one of the leaders of Your Mule Cashout (YMCO), a criminal organization that had operated since September 2007 and recruited more than 15,000 money mules in the United States.

Korniev managed YMCO employees, hired and fired staff, rewarded or punished workers based on their performance, and helped develop policies and procedures for the organization’s money laundering activities.

The other four people associated with YMCO were arrested overseas more than 10 years ago. After being extradited to the Western District of North Carolina, they pleaded guilty to conspiracy to commit money laundering. Each received a sentence of between 37 and 63 months in prison and was ordered to pay more than $9.1 million in restitution to U.S. victims.

Fake jobs were used to recruit money mules

According to court documents, YMCO recruited U.S. residents as money mules through spam emails sent by fake companies.

Recruits were reportedly put through what appeared to be a legitimate hiring process. They were then instructed to receive and process payments on behalf of legitimate companies, helping cybercriminals move stolen funds through the financial system.

The cybercriminals allegedly transferred stolen money to Rabah’s bank account. Rabah then sent the illicit funds through Western Union and MoneyGram to “cashing contractors” in Moldova, Ukraine, Russia, and Latvia.

YMCO allegedly operated similar schemes in Germany, Italy, the United Kingdom, and Australia. The organization processed more than $10 million stolen by cybercriminals from more than 750 U.S. bank accounts across over 35 banks.

Korniev faces up to 50 years in prison

On Thursday, Korniev pleaded guilty to money laundering, aggravated identity theft, conspiracy to commit money laundering, conspiracy to commit computer fraud, and conspiracy to commit access device theft.

He faces a minimum sentence of two years in prison and a maximum sentence of 50 years after admitting that the money laundering operation he ran with multiple accomplices caused confirmed victims to suffer more than $14.7 million in actual losses.

Korniev also admitted to laundering at least $7 million of the $9.7 million he received from cybercriminals.

“Money mules play a critical role in cybercrime, and the Department of Justice pursues them and their recruiters wherever they operate, no matter how long it takes,” said Assistant Attorney General A. Theisen Duva. The statement was included in a Department of Justice announcement.

Money mules remain a major cybercrime risk

Money mules play a key role in online scams. Some people become involved after being targeted with offers of easy money, while others may be pressured or threatened by criminals.

Five years ago, Europol announced that law enforcement authorities in 27 countries had arrested 1,803 of 18,351 identified money mules during a global anti-money laundering operation called EMMA, or European Money Mule Action.

“Organized crime groups do this by preying on groups such as students, immigrants and the economically disadvantaged, offering easy money through legitimate-looking job advertisements and social media posts,” Europol warned at the time.

People who allow their bank accounts to be used to transfer criminal proceeds can face serious legal consequences. Lack of knowledge may not protect someone from prosecution for money laundering.

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