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Fired IT Contractor Resets 2,500 Passwords, Causes $862,000 in Damages

Fired IT Contractor Resets 2,500 Passwords, Causes $862,000 in Damages

A former IT contractor in Ohio has pleaded guilty to hacking his ex-employer’s computer network in retaliation for being fired, causing over $862,000 in damages and locking thousands of workers out of their systems.

Maxwell Schultz, 35, of Columbus, Ohio, was terminated from his position as a contract employee in his company’s IT department on May 14, 2021. Shortly after his firing, Schultz accessed the company’s corporate network by impersonating another contractor to obtain login credentials, according to the U.S. Department of Justice.

Once inside the system, Schultz ran a PowerShell script designed to reset approximately 2,500 passwords, effectively locking thousands of employees and contractors out of their computers across the country. He also attempted to cover his tracks by searching for ways to delete logs and PowerShell window events, and cleared multiple system logs.

The Damage

The attack caused significant disruption to business operations. The company incurred more than $862,000 in losses from employee downtime, customer service disruptions, and the labor required to restore the network to normal operations.

As part of his plea agreement, Schultz admitted to conducting the cyberattack because he was upset about being fired.

Sentencing

U.S. District Judge Lee Rosenthal will impose sentencing on January 30, 2026. Schultz faces up to 10 years in federal prison and a possible maximum fine of $250,000.

The FBI conducted the investigation, and the case is being prosecuted by Assistant U.S. Attorneys Rodolfo Ramirez and Michael Chu in the Southern District of Texas.

The case serves as a reminder of the significant damage that can be caused by insider threats, particularly when former employees retain knowledge of company systems and credentials are not immediately revoked after termination.

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