A Charlotte-led FBI investigation has finally reached one of its biggest targets after more than a decade of international pursuit.
Oleg Korniev, a 42-year-old Ukrainian-Russian dual citizen, just pled guilty from a Gaston County jail to running a massive global money-laundering operation. Federal prosecutors say the network moved millions stolen from American businesses and bank accounts.
“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.”
Korniev was a leader of Your Mule Cashout, known as YMCO. The organization recruited more than 15,000 people across the United States to move stolen money overseas.
The network recruited unsuspecting money mules from Charlotte and communities across North and South Carolina. Those victims often believed they had landed legitimate work-from-home jobs.
Instead, hackers deposited stolen money into their personal bank accounts.
The recruits were instructed to withdraw the funds and wire them to supposed business partners overseas. Those transfers actually sent stolen money to YMCO conspirators, primarily in Eastern Europe.
Hackers compromised accounts at more than 35 financial institutions, according to earlier court filings. Those institutions included Charlotte-based Bank of America.
Federal authorities say YMCO ultimately targeted more than 750 U.S. bank accounts and laundered at least $10 million.
Korniev admitted the organization caused more than $14.7 million in actual and intended losses to confirmed victims. He personally intended to launder more than $9.7 million and successfully moved at least $7 million.
His role went far beyond processing transactions.
Prosecutors say Korniev helped establish company policies, hired and fired workers, managed employees and secured illegal services supporting the operation.
He was eventually arrested in the Republic of Georgia with help from international authorities. Korniev has agreed to forfeit cash seized during that arrest and pay restitution to victims.
The case has deep roots in Charlotte.
Four other YMCO members were previously arrested overseas and extradited to the Western District of North Carolina. They received prison sentences ranging from roughly 37 to 63 months.
Each was also ordered to pay more than $9.1 million in restitution.
Korniev pleaded guilty to five federal charges, including money laundering, computer fraud and aggravated identity theft.
He now faces between two and 50 years in federal prison. A sentencing date has not yet been announced.
The FBI in Charlotte is continuing to investigate the wider network.
