Oleg Korniev Pleads Guilty in 15,000 Mule Money Laundering Case

Guilty plea in international mule network

Oleg Korniev, a 42 year old Ukrainian-Russian citizen, has pleaded guilty to helping run Your Mule Cashout, known as YMCO, an international money laundering organization. Court documents describe an elaborate and sophisticated system of money mules that offered services to hackers seeking to conceal illicit proceeds from cyberattacks in countries outside the United States. In exchange for a share of the money, YMCO moved stolen funds to Eastern European countries.

Mules were US citizens, prosecutors say

Prosecutors say YMCO recruited 15,000 money mules. According to the court materials, the mules were United States citizens who believed they were working for legitimate companies and making genuine money transfers. Instead, they moved the hackers' proceeds to fake companies overseas for other YMCO conspirators. The money mules were not paid for their work.

Korniev handled hiring, firing, and rewards based on performance. He has admitted responsibility for more than $14.7 million in losses. The court materials state that he intended to launder about $9.7 million from cybercriminals and laundered $7 million.

Charges, other schemes, and sentencing

YMCO also allegedly ran similar schemes in Australia, Germany, Italy, and the United Kingdom, processing more than $10 million stolen by cybercriminals from over 750 United States bank accounts. Korniev pleaded guilty to money laundering, computer fraud, access device theft, and aggravated identity theft. Sentencing is set for a later date, and the court materials note a maximum penalty of 50 years in prison.

Assistant Attorney General Andrew Tysen Duva of the Justice Department's Criminal Division said money mules play crucial roles in cybercrime and that the Justice Department will pursue mules and their recruiters wherever they operate and however long it takes. He added that the department will work with international partners to dismantle criminal networks that attack Americans.

Sources: Cybernews