United States Attorney's Office for the Middle District of Tennessee

13/08/2024 | Press release | Distributed by Public on 13/08/2024 19:10

U.S. Army Intelligence Analyst Pleads Guilty to Charges of Conspiracy to Obtain and Disclose National Defense Information, Export Control Violations and Bribery

NASHVILLE - Korbein Schultz, a U.S. Army soldier and intelligence analyst, pleaded guilty today to all charges against him in the indictment returned by a federal grand jury in March 2024 charging him with conspiracy to obtain and disclose national defense information, exporting technical data related to defense articles without a license, conspiracy to export defense articles without a license, and bribery of a public official, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee, and Assistant Attorney General Matthew G. Olsen of the National Security Division.

"This defendant sold national defense information to a foreign actor and conspired to corrupt other members of our military," said United States Attorney Henry C. Leventis. "In doing so, he violated his training and his oath as a member of the armed services and he compromised our national security. Today's guilty plea to all of the charges in the indictment ensures that he will be held fully accountable for his crimes."

"The defendant abused his access to restricted government systems to sell sensitive military information to a person he knew to be a foreign national," said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. "By conspiring to transmit national defense information to a person living outside the United States, this defendant callously put our national security at risk to cash in on the trust our military placed in him. Today's guilty plea is a stark reminder that those who would betray their sworn oath for personal gain will be identified and brought to justice."

"The defendant has admitted guilt in a case that should send a strong message to any U.S. service members thinking about betraying their country," said Executive Assistant Director Robert Wells of the FBI's National Security Branch. "The U.S. is governed by the rule of law and when persons, placed in a position of trust violate that trust, the FBI and our partners will hold them accountable.  Governments like China are aggressively targeting our military personnel and national security information and we will do everything in our power to ensure that information is safeguarded from hostile foreign governments."

"This Soldier swore an oath to faithfully discharge his duties, to include protecting national defense information. Not only did he fail in his sworn duty, but he placed personal gain above his duty to our country and disclosed information that could give advantage to a foreign nation, putting his fellow Soldiers in jeopardy," said Brigadier General Rhett R. Cox, Commanding General of the Army Counterintelligence Command. "Army Counterintelligence Command, with our partners at the FBI, Department of Justice, and the greater intelligence community, will ruthlessly pursue those who commit acts such as these. Let this case serve as a warning: if any member of the Army, past or present, is asked for classified or sensitive information, they should report it to the appropriate authorities within 24 hours or be held fully accountable for their inaction."

According to charging and plea documents, Schultz - an enlisted intelligence analyst in the United States Army who held a Top Secret//Sensitive Compartmented Information ("TS//SCI") security clearance - conspired with an individual who lived in Hong Kong and who Schultz suspected of being associated with the Chinese Government ("Conspirator A") to collect national defense information, including classified information and export-controlled technical data related to U.S. military weapons systems, and to transmit that information to Conspirator A in exchange for money. Schultz entered into this conspiracy even though, as part of his official duties in the Army, he was required (1) to protect national defense information, classified information, and controlled unclassified information ("CUI"); (2) to train other members of his unit on the proper handling, storage, and dissemination of classified information and information marked CUI; and (3) to report suspicious incidents, including attempts by anyone without authorization to receive classified or sensitive information about U.S. military operations, organizations, equipment, or personnel.

During the conspiracy, Conspirator A told Schultz the specific information that Conspirator A wanted Schultz to gather and send to him, including sensitive information related to missile defense and mobile artillery systems. Before he was arrested, Schultz sent Conspirator A dozens of sensitive and restricted (but unclassified) U.S. military documents regarding a variety of U.S. military weapons systems and U.S. military tactics and strategy, including documents containing export-controlled technical data. Among the items that Schultz collected and transmitted to Conspirator A were: (1) a document discussing the lessons learned by the United States Army from the Ukraine/Russia war that it would apply in a defense of Taiwan; (2) an operations order outlining the deployment of the defendant's unit to Eastern Europe in support of NATO operations; (3) an Air Force Tactics, Techniques, and Procedures ("AFTTP") document relating to the HH-60 helicopter, which included a banner warning that the document contained technical data subject to export controls; (4) an AFTTP manual relating to the F-22A fighter aircraft, which included a banner warning that the document contained technical data subject to export controls; (5) an AFTTP manual relating to the operation of Intercontinental Ballistic Missile systems, which included a banner warning that the document contained technical data subject to export controls; (6) a publication related to the U-2 reconnaissance aircraft; (7) a document describing modifications of the B-52 aircraft; (8) documents describing tactics to counter unmanned aircraft systems and the use of unmanned aircraft systems in large-scale combat operations; (9) documents relating to Chinese military tactics, the Chinese military's preparedness, and the People's Liberation Army Rocket Force; (10) documents relating to rocket, missile, and artillery weapons systems, including the High Mobility Artillery Rocket System ("HIMARS") and the Terminal High Altitude Area Defense ("THAAD") missile defense system; (11) documents relating to military exercises and U.S. military forces in the Republic of Korea and the Philippines; and (12) a document relating to U.S. military satellites. In exchange for all of this information, Schultz was paid approximately $42,000 by Conspirator A.

Sentencing is scheduled for Jan. 23, 2025. Schultz faces a maximum penalty of 10 years in prison for conspiracy to obtain and transmit national defense information; 20 years in prison for exporting technical data related to defense articles to the People's Republic of China without a license; 20 years in prison for conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations ("ITAR"); and 15 years in prison for bribery of a public official. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and the U.S. Army Counterintelligence Command investigated the case.

Assistant U.S. Attorney Josh Kurtzman for the Middle District of Tennessee and Trial Attorneys Adam Barry and Christopher Cook of the National Security Division's Counterintelligence and Export Control Section prosecuted the case.

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