http://www.hometownannapolis.com/cgi-bin/read/2007/04_07-34/TOP By JEFF HORSEMAN Staff Writer April 7, 2007 BALTIMORE - In a rare case involving a criminal conflict of interest, a Severna Park man will be confined to his house for six months for steering more than $700,000 in federal government contracts to companies owned by him and his wife. Wayne J. Schepens, 37, received six months home detention and two years probation in the sentence handed down in U.S. District Court yesterday. The former National Security Agency employee will also have to pay a $100,000 fine and perform 50 hours community service. He pleaded guilty in February to one count of acts affecting a personal financial interest as part of a deal with federal prosecutors. The charge stems from Mr. Schepens' involvement in the Cyber Defense Exercise, which he helped create. The annual exercise pits military service academy students against NSA workers who try to hack into computer networks created by the students. Mr. Schepens oversaw most of the exercise's aspects. Between March 2003 and July 2005, companies owned by Mr. Schepens and his wife, Jennifer, received $774,000 in government contracts to support the exercise. Mrs. Schepens was never accused of wrongdoing. The Schepens also received $54,000 on invoices submitted to the U.S. Military Academy and the U.S. Merchant Marine Academy under separate contracts for the same or similar services rendered. In addition, their firm got a little over $606,000 through a contract and subcontract awarded on a no-bid basis to support the 2005 and 2006 exercises. Mr. Schepens recommended the deals be awarded to his wife's firm, but he never disclosed his ties to the company in a 2004 financial disclosure report. Addressing the court, Mr. Schepens said his work on the exercise, and what he accomplished, caused him to become arrogant. "I began to rationalize the steps taken," he said. "I just figured if the work was getting done and no one was complaining, then that's all that mattered." As his wife got more involved, Mr. Schepens said, "I continued to rationalize that the mission mattered more. I know what I was doing was wrong now." Mr. Schepens resigned from NSA last July after an investigation of his conflict began. He had been with the agency since 1998. His attorney, Steven Wrobel, described him as a "burning star" on his way to a top NSA post before his troubles surfaced. Judge Catherine C. Blake told Mr. Schepens she was glad he accepted responsibility and used the word arrogance in his remarks. She said Mr. Schepens did "a great deal of good" with his exercise, but made some bad mistakes. He could have faced up to five years in prison and a $250,000 fine. But prosecutors did not push for jail time. During his home detention, Mr. Schepens will be electronically monitored and allowed to leave home for work and other purposes approved by his probation officer. Published April 07, 2007, The Capital, Annapolis, Md Copyright 2007 The Capital, Annapolis, Md. __________________________ Subscribe to InfoSec News http://www.infosecnews.org
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