Shawn Carpenter
Encyclopedia
Shawn Carpenter is an American Navy
veteran and whistleblower
(previously employed by Sandia National Laboratories
) who tracked down a Chinese cyberespionage ring that is code-named Titan Rain
by the FBI. He came to national attention when his story was reported on in the September 5, 2005 issue of Time
magazine.
Carpenter was an employee of Sandia National Laboratories
, investigating security breaches in its networks. However, upon tracking several breaches of Sandia, Lockheed Martin Corporation, Redstone Arsenal
, and even NASA
, dating back to 2003, Carpenter noticed patterns that began to appear to link the attacks to a single group. He was also impressed by the meticulous, voracious, and incredibly fast manner (sometimes completed in less than 30 minutes) in which the hackers operated. Such observations led him to alert the federal government of his findings.
The Titan Rain
hacking operation was first reported in an August 25, 2005 Washington Post article by Bradley Graham, which didn't mention Carpenter. Graham listed anonymous governmental officials as his sources.
After informing his supervisors of the breaches, he was told that his only concern was Sandia
computers, and to drop the issue. His employment was later terminated when Carpenter disobeyed his management and communicated the information about the security breaches to the United States Army
and the FBI. He was a confidential informant for the FBI for almost half a year before Sandia discovered his actions. Carpenter reportedly felt betrayed by the termination, as he viewed his actions were a service to his country, similar to that of his previous military service.
According to Carpenter, during his termination hearing at Sandia, Bruce Held, Sandia's Chief of Counterintelligence, yelled "[you're] lucky you have such understanding management... if you worked for me, I would decapitate you! There would at least be blood all over the office!" During the subsequent court case, Held testified that he did use the word "decapitate" and, while he did not recall using the word "blood", would not contest it. He also apologized.
He sued Sandia National Laboratories
for wrongful termination and defamation; a jury awarded him almost $4.7 million in compensatory and punitive damages on February 13, 2007. The jury more than doubled the punitive damages requested by Carpenter attorneys Thad Guyer, Stephani Ayers and Philip Davis. The 13-person New Mexico state district court jury determined that Sandia's handling of Shawn Carpenter's termination was "malicious, willful, reckless, wanton, fraudulent or in bad faith." Juror Ed Dzienis said that, "If they (Sandia) have an interest in protecting us, they certainly didn't show it with the way they handled Shawn." Ms. Alex Scott, the jury forewoman, said jurors were upset by the lack of documentation of the process and by the "reckless behavior on the part of Sandia to not have adequate policies in place for employees about hacking, and the cavalier attitude about national security and global security."
Carpenter's wife, Dr. Jennifer Jacobs, testified at the trial. Dr. Jacobs, a former Sandia scientist, nuclear engineer, West Point graduate, and Army Reserve Major, said Sandia management questioned her loyalty to the company after her husband was fired. Dr. Jacobs left Sandia and was later appointed as a White House Fellow, and was a Director at the United States National Security Council
. In an interview with the Albuquerque Journal, Dr. Jacobs stated, "The point for us all along was this is bad for the country to have contractors like Sandia Corporation behaving this way -- with impunity. And if other citizens don't do this, it's the beginning of the end for our country. That's what we kept coming back to: This is what we have to do, because it's what we expect of others."
Sandia Corporation, the private entity that manages Sandia National Laboratories
on behalf of the National Nuclear Security Administration
, the Department of Energy
and Federal Government of the United States
, is a wholly owned subsidiary of the for-profit Lockheed Martin Corporation.
In an ironic twist, Carpenter testified at trial that he found hundreds of pages of detailed schematics and other sensitive documents labeled, "Lockheed Martin Proprietary Information" and "Export Controlled" regarding the Mars Reconnaissance Orbiter
stashed on a foreign server in South Korea. He was helping the FBI investigate the stolen Lockheed Martin
information along with hundreds of other network breaches at military and United States defense contractors when Sandia officials fired him.
, Carpenter is employed at NetWitness Corporation, a startup headed by Amit Yoran
, former director of the National Cyber Security Division
within the United States
Department of Homeland Security.
In March 2007, Sandia National Laboratories
retained three additional attorneys at the international corporate defense firm of Baker Botts
. In post-trial motions, Sandia attorneys unsuccessfully argued to throw out the jury verdict, to reduce the judgment to zero, and for a new trial. Carpenter's attorneys successfully argued a motion for post-judgment interest, and Sandia was ordered to pay an interest rate of 15% per year on the final judgment of $4,742,146.66 (plus attorney fees) during the appeals process.
In April 2007, Sandia attorneys filed a motion to appeal the jury verdict. Sandia National Laboratories
posted a $5.8 million supersedeas bond
to prevent Carpenter from seizing Sandia assets during the appeals process. Interest in the amount of almost $60,000 a month accumulates while Sandia pursues their appeals. According to news reports, Sandia plans to appeal to the New Mexico Supreme Court
, if necessary, which could take years.
On October 14, 2007, The Albuquerque Journal published a story ("Analyst, Sandia Settle Suit") that stated that Sandia had dropped its appeal of the verdict. According to the story, the judgment had been accumulating 15 percent interest since the verdict in his favor in February 2007. The piece also related that Carpenter continues to work in the national security area for clients in the intelligence community, federal agencies and the military.
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
veteran and whistleblower
Whistleblower
A whistleblower is a person who tells the public or someone in authority about alleged dishonest or illegal activities occurring in a government department, a public or private organization, or a company...
(previously employed by Sandia National Laboratories
Sandia National Laboratories
The Sandia National Laboratories, managed and operated by the Sandia Corporation , are two major United States Department of Energy research and development national laboratories....
) who tracked down a Chinese cyberespionage ring that is code-named Titan Rain
Titan Rain
Titan Rain was the designation given by the federal government of the United States to a series of coordinated attacks on American computer systems since 2003...
by the FBI. He came to national attention when his story was reported on in the September 5, 2005 issue of Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
magazine.
Carpenter was an employee of Sandia National Laboratories
Sandia National Laboratories
The Sandia National Laboratories, managed and operated by the Sandia Corporation , are two major United States Department of Energy research and development national laboratories....
, investigating security breaches in its networks. However, upon tracking several breaches of Sandia, Lockheed Martin Corporation, Redstone Arsenal
Redstone Arsenal
Redstone Arsenal is a United States Army base and a census-designated place adjacent to Huntsville in Madison County, Alabama, United States and is part of the Huntsville-Decatur Combined Statistical Area...
, and even NASA
NASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...
, dating back to 2003, Carpenter noticed patterns that began to appear to link the attacks to a single group. He was also impressed by the meticulous, voracious, and incredibly fast manner (sometimes completed in less than 30 minutes) in which the hackers operated. Such observations led him to alert the federal government of his findings.
The Titan Rain
Titan Rain
Titan Rain was the designation given by the federal government of the United States to a series of coordinated attacks on American computer systems since 2003...
hacking operation was first reported in an August 25, 2005 Washington Post article by Bradley Graham, which didn't mention Carpenter. Graham listed anonymous governmental officials as his sources.
After informing his supervisors of the breaches, he was told that his only concern was Sandia
Sandia
-Places:* Sandia, California, community in Imperial County* Sandia, Texas, town in the USA* Sandia, Peru, town in the Puno region of Peru* Sandia Province, province in the Puno region* Sandia Base, nuclear weapons base* Pueblo of Sandia Village, New Mexico, U.S...
computers, and to drop the issue. His employment was later terminated when Carpenter disobeyed his management and communicated the information about the security breaches to the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
and the FBI. He was a confidential informant for the FBI for almost half a year before Sandia discovered his actions. Carpenter reportedly felt betrayed by the termination, as he viewed his actions were a service to his country, similar to that of his previous military service.
According to Carpenter, during his termination hearing at Sandia, Bruce Held, Sandia's Chief of Counterintelligence, yelled "[you're] lucky you have such understanding management... if you worked for me, I would decapitate you! There would at least be blood all over the office!" During the subsequent court case, Held testified that he did use the word "decapitate" and, while he did not recall using the word "blood", would not contest it. He also apologized.
He sued Sandia National Laboratories
Sandia National Laboratories
The Sandia National Laboratories, managed and operated by the Sandia Corporation , are two major United States Department of Energy research and development national laboratories....
for wrongful termination and defamation; a jury awarded him almost $4.7 million in compensatory and punitive damages on February 13, 2007. The jury more than doubled the punitive damages requested by Carpenter attorneys Thad Guyer, Stephani Ayers and Philip Davis. The 13-person New Mexico state district court jury determined that Sandia's handling of Shawn Carpenter's termination was "malicious, willful, reckless, wanton, fraudulent or in bad faith." Juror Ed Dzienis said that, "If they (Sandia) have an interest in protecting us, they certainly didn't show it with the way they handled Shawn." Ms. Alex Scott, the jury forewoman, said jurors were upset by the lack of documentation of the process and by the "reckless behavior on the part of Sandia to not have adequate policies in place for employees about hacking, and the cavalier attitude about national security and global security."
Carpenter's wife, Dr. Jennifer Jacobs, testified at the trial. Dr. Jacobs, a former Sandia scientist, nuclear engineer, West Point graduate, and Army Reserve Major, said Sandia management questioned her loyalty to the company after her husband was fired. Dr. Jacobs left Sandia and was later appointed as a White House Fellow, and was a Director at the United States National Security Council
United States National Security Council
The White House National Security Council in the United States is the principal forum used by the President of the United States for considering national security and foreign policy matters with his senior national security advisors and Cabinet officials and is part of the Executive Office of the...
. In an interview with the Albuquerque Journal, Dr. Jacobs stated, "The point for us all along was this is bad for the country to have contractors like Sandia Corporation behaving this way -- with impunity. And if other citizens don't do this, it's the beginning of the end for our country. That's what we kept coming back to: This is what we have to do, because it's what we expect of others."
Sandia Corporation, the private entity that manages Sandia National Laboratories
Sandia National Laboratories
The Sandia National Laboratories, managed and operated by the Sandia Corporation , are two major United States Department of Energy research and development national laboratories....
on behalf of the National Nuclear Security Administration
National Nuclear Security Administration
The United States National Nuclear Security Administration is part of the United States Department of Energy. It works to improve national security through the military application of nuclear energy...
, the Department of Energy
United States Department of Energy
The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
and Federal Government of the United States
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
, is a wholly owned subsidiary of the for-profit Lockheed Martin Corporation.
In an ironic twist, Carpenter testified at trial that he found hundreds of pages of detailed schematics and other sensitive documents labeled, "Lockheed Martin Proprietary Information" and "Export Controlled" regarding the Mars Reconnaissance Orbiter
Mars Reconnaissance Orbiter
Mars Reconnaissance Orbiter is a NASA multipurpose spacecraft designed to conduct reconnaissance and Exploration of Mars from orbit...
stashed on a foreign server in South Korea. He was helping the FBI investigate the stolen Lockheed Martin
Lockheed Martin
Lockheed Martin is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area....
information along with hundreds of other network breaches at military and United States defense contractors when Sandia officials fired him.
, Carpenter is employed at NetWitness Corporation, a startup headed by Amit Yoran
Amit Yoran
Amit Yoran was the National Cyber Security Division director within the United States Department of Homeland Security. He took up the post in September 2003 and resigned in October 2004....
, former director of the National Cyber Security Division
National Cyber Security Division
The National Cyber Security Division is a division of the Office of Cyber Security & Communications, within the United States Department of Homeland Security's Directorate for National Protection and Programs...
within the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Department of Homeland Security.
In March 2007, Sandia National Laboratories
Sandia National Laboratories
The Sandia National Laboratories, managed and operated by the Sandia Corporation , are two major United States Department of Energy research and development national laboratories....
retained three additional attorneys at the international corporate defense firm of Baker Botts
Baker Botts
Baker Botts L.L.P. is a major United States-based international law firm of around 800 attorneys, with a long, prominent history, significant political connections, boasting more than half of the Fortune 100 companies among its clients. Headquartered in One Shell Plaza in Downtown Houston, Texas,...
. In post-trial motions, Sandia attorneys unsuccessfully argued to throw out the jury verdict, to reduce the judgment to zero, and for a new trial. Carpenter's attorneys successfully argued a motion for post-judgment interest, and Sandia was ordered to pay an interest rate of 15% per year on the final judgment of $4,742,146.66 (plus attorney fees) during the appeals process.
In April 2007, Sandia attorneys filed a motion to appeal the jury verdict. Sandia National Laboratories
Sandia National Laboratories
The Sandia National Laboratories, managed and operated by the Sandia Corporation , are two major United States Department of Energy research and development national laboratories....
posted a $5.8 million supersedeas bond
Supersedeas bond
A supersedeas bond, also known as a defendant's appeal bond, is a type of surety bond that a court requires from an appellant who wants to delay payment of a judgment until the appeal is over....
to prevent Carpenter from seizing Sandia assets during the appeals process. Interest in the amount of almost $60,000 a month accumulates while Sandia pursues their appeals. According to news reports, Sandia plans to appeal to the New Mexico Supreme Court
New Mexico Supreme Court
The New Mexico Supreme Court is the highest court in the U.S. state of New Mexico. It is established and its powers defined by Article VI of the New Mexico Constitution...
, if necessary, which could take years.
On October 14, 2007, The Albuquerque Journal published a story ("Analyst, Sandia Settle Suit") that stated that Sandia had dropped its appeal of the verdict. According to the story, the judgment had been accumulating 15 percent interest since the verdict in his favor in February 2007. The piece also related that Carpenter continues to work in the national security area for clients in the intelligence community, federal agencies and the military.
External links
- NetWitness Corporation company website
- TIME Magazine (September 5, 2005 issue) article "The Invasion Of The Chinese Cyberspies (And the Man Who Tried to Stop Them)"
- TIME Magazine online (August 25, 2005) article "Inside the Chinese Hack Attack"
- Albuquerque Journal (September 15, 2005) "Battle Against Hackers Costs Employee Job"
- Albuquerque Journal (February 14, 2007) article "Sandia Hacker Gets $4 Million: Analyst Fired For FBI Contact"
- Computerworld (February 26, 2007) article "Q&A: Reverse Hacker Describes Ordeal"
- The New York Times (December 9, 2007) article "China Link Suspected in Lab Hacking"
- SecurityFocus (December 10, 2007) article "National Labs Hit With Targeted Attacks"
- ABC News (February 26, 2007) report "Jury Slaps Defense Giant for Neglecting National Security"
- TIME Magazine online (February 14, 2007) article "A Security Analyst Wins Big in Court"
- Federal Computer Weekly (February 26, 2007) article "Intercepts: Chinese Checkers"
- Congressional correspondence: Management cover-ups and malfeasance at Sandia (December 4, 2005) blog "LANL: The Real Story"
- The Register (February 16, 2007 article "Employee Fired For Probing Bad Guys Awarded $4.7M"
- Project on Government Oversight (POGO) (March 1, 2007) article "Cyber-security at Risk"
- Los Angeles Times (March 4, 2008) article "China's Computer Hacking Worries Pentagon"
- Computerworld (April 17, 2007) article "Reverse Hacker Case Gets Costlier for Sandia Labs"
- Forbes (September 11, 2007) article "Cyberspies Target Silent Victims"
- Computerworld (October 20, 2005) article "Guard Against Titan Rain Hackers"
- Searchsecurity.com (September 22, 2005) article "The Case of Shawn Carpenter: A Cautionary Tale"
- The Washington Times (July 26, 2007) article "FBI Calls Chinese Espionage 'Substantial'"
- Government Computer News (August 21, 2006) article "Red Storm Rising"
- Federal Computer Weekly (February 13, 2007) article "Cyber Officials: Chinese Hackers Attack 'Anything and Everything'"
- New Mexico State Judiciary Case Lookup System database "Carpenter vs. Sandia"
See also
- Timeline of Cox Report controversy
- Cyber-warfareCyber-warfareCyberwarfare refers to politically motivated hacking to conduct sabotage and espionage. It is a form of information warfare sometimes seen as analogous to conventional warfare although this analogy is controversial for both its accuracy and its political motivation.Government security expert...
- National Security Whistleblowers CoalitionNational Security Whistleblowers CoalitionThe National Security Whistleblowers Coalition , founded in 2004 by former FBI translator Sibel Edmonds in league with over 50 former and current United States government officials from more than a dozen agencies, is an independent, nonpartisan alliance of whistleblowers who have come forward to...