Schmidt, 31, served in the U.S. Army from January 2015 to January 2020, assigned to the 109th Military Intelligence Battalion at Joint Base Lewis-McChord (JBLM).
His role granted Top Secret/Sensitive Compartmented Information (TS/SCI) clearance, providing access to highly classified materials related to surveillance, interrogation protocols, and military operations.
Upon leaving active duty, Schmidt retained a hardware device enabling unauthorized access to secure Department of Defense (DoD) networks, violating protocols for handling Critical Program Information (CPI).
Espionage Activities and Coordination with Chinese Entities
Within months of his military separation, Schmidt initiated contact with Chinese intelligence services.
He first approached the Chinese Consulate in Turkey in early 2020, later escalating communication via direct emails to Chinese security personnel, offering national defense information.
In March 2020, Schmidt traveled to Hong Kong carrying classified documents detailing high-level military secrets and a network-access device.
He remained in China for over three years, drafting comprehensive briefs for Chinese authorities that included technical specifications of U.S. intelligence systems and methods to compromise secure networks.
Legal Repercussions and Sentencing
Schmidt was arrested at San Francisco International Airport in October 2023 upon returning to the United States.
On June 18, 2025, he pleaded guilty to two felonies:
- Attempted delivery of national defense information (18 U.S.C. § 793)
- Unlawful retention of national defense information (18 U.S.C. § 793(e))
Each charge carries a maximum penalty of 10 years imprisonment and a $250,000 fine under the Espionage Act. - The FBI and U.S. Army Counterintelligence Command led the investigation, with sentencing scheduled for September 9, 2025.
This case highlights vulnerabilities in Operations Security (OPSEC) protocols for separated personnel and underscores ongoing counterintelligence challenges regarding Critical Technology protection.
Schmidt’s actions compromised military plans and intelligence operations classified at the Top Secret level, potentially enabling adversarial exploitation of U.S. defense infrastructure.
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