 In July 1995, Schwartz was prosecuted in the case of "State of Oregon vs. Randal Schwartz", which dealt with compromised computer security during his time as a system administrator for Intel.In the process of performing penetration testing, he cracked a number of passwords on Intel's systems.Schwartz was originally convicted on three felony counts, with one reduced to a misdemeanor, but on February 1, 2007, his arrest and conviction records were sealed through an official expungement, and he is legally no longer a felon.