Mark D. Schmidt
CEO · Chairman · Primary Signatory · Transfer Focal Point
Mark D. Schmidt is the chief executive and chairman of Cyberlux Corporation, the Nevada-incorporated OTC-listed company that held the HII Mission Technologies subcontract at the centre of this investigation. His name appears across 166 documents in the record — more than any other individual — spanning the contract award, the advance payment, the use-of-funds record, the stop-work period, the Modification 4 termination settlement, and the interpleader proceeding in the Eastern District of Virginia that followed.
What this profile says up front
The principal actor across every material event
Mark D. Schmidt is the chief executive and chairman of Cyberlux Corporation, the Nevada-incorporated OTC-listed company that held the HII Mission Technologies subcontract at the centre of this investigation. His name appears across 166 documents in the record — more than any other individual — spanning the contract award, the advance payment, the use-of-funds record, the stop-work period, the Modification 4 termination settlement, and the interpleader proceeding in the Eastern District of Virginia that followed.
He is not named as a defendant in the Rosen federal securities enforcement action. He is not, as of the date of this brief, a criminal defendant in any proceeding. The findings below are drawn from court filings, contract documents, OTC disclosure materials, and publicly available records. These are the facts in the record and the questions they raise. The categories are analytical, not findings of liability.
The numbers that frame the profile
What the record establishes
The $4,700 / $39,429 gap
In March 2022, Schmidt stated in a Signal communication that the all-in cost of a K8 drone was $4,700 — covering materials, labour, electronics, and packaging. Seventeen months later, the HII subcontract carried an implied per-unit value of $39,429. The Signal communication is cited in court proceedings. The contract is a matter of public record. No public filing contains an explanation of how a $4,700 production cost supports a $39,429 unit price on a firm fixed-price government subcontract.
The advance and its required trust structure
Advance payments are the least preferred form of contract financing under FAR 32.4 because the money leaves the government before any delivery is made. The funds are required to be held in a segregated account, in trust, disbursed only for contract purposes. HII's own draft settlement language described the advance as "Government property held in trust — not Cyberlux property." That paragraph did not survive the final Modification 4 agreement. Cyberlux's counsel struck it before signing.
Day 0 through Day 38: the documented transfers
On the same banking day the advance arrived (Day 0), $3,000,000 left Cyberlux's account for the acquisition of Datron World Communications — a competing drone company. By Day 3, $213,000 had been transferred to Fletcher Jones Motorcars, a luxury vehicle dealership. By Day 22, $21,806,076 had been disbursed, against a stated total drone production cost of $9.4 million. On Day 38, the record documents a transfer of $850,000 to an Edward Jones investment account associated with Schmidt personally. The same day, $994,460 moved to G2G Global Ltd — a UK entity incorporated 21 days earlier, with no documented contractual relationship to Cyberlux appearing in any public filing. Holly Schmidt appears in use-of-funds materials as a related-party transfer recipient.
The stop-work order and the velocity of disbursement
The Stop Work Order was issued on December 22, 2023 — Day 105 of the subcontract. By Day 114, the confirmed account balance was approximately $3.2 million. Total disbursed in 114 days: $35.5 million. The Welter Declaration aggregates a subset of Schmidt-controlled transfers; it does not account for the full disbursement record. Schmidt's stated position at the time of the Stop Work Order — according to court filings — was that the unearned advance balance was owed back to HII.
Modification 4: credit for 1,608 unaccepted drones
Nine months after the Stop Work Order, Modification 4 — the termination settlement — gave Cyberlux credit for 1,608 drones the government had not formally accepted under DD-250 records. Those units have been classified in interpleader filings into four categories: 37 accepted by HII only (not the government); 745 that had not passed factory acceptance testing; 526 described as incomplete or built after the stop-work order; and 300 for which assembly had not started. The DD-250 acceptance record stands at 392 units, valued at $14,954,400. The Modification 4 settlement figure is $25.7 million. Upon information and belief, the unaccepted hardware is in a warehouse at Naval Station Crane. The factual basis Schmidt presented to HII to justify credit for the 1,608 units does not appear in any public filing.
The communication restriction and the CO's approval
Modification 4 contains a clause — drafted by HII — prohibiting Cyberlux from communicating with the government contracting officer about the performance or termination of the contract. The contracting officer read that clause and approved the settlement. A contractor prohibited from speaking to its own government customer about contract performance is not a standard commercial term. Whether Schmidt consented to that clause and on what basis has not been addressed in any public filing.
The commission architecture and the certification question
FAR 52.203-5 requires a contractor to certify, at the time of award, that no contingent fee arrangement exists with any person retained to solicit or secure the contract. ITAR Part 130 requires disclosure to the State Department of any fees paid in connection with the sale of a defence article where the amount exceeds $500,000. The K8 is a defence article sold under Foreign Military Financing. At the time of the subcontract award, four parties held pre-existing arrangements entitling them to a share of proceeds: ARG Group (20%), Montague Capital Partners (approximately 5%), WeShield/Assure Global, and Fairwinds Technologies (8%). Their combined claims total approximately $22.5 million against a court-held interpleader corpus of $23.7 million. Whether these arrangements were disclosed to HII, to the contracting officer, or to the State Department at the time of the FAR 52.203-5 certification does not appear in any public filing.
The securities layer
Cyberlux Corporation (OTC: CYBL) is named as an issuer in the January 2026 federal securities enforcement action against Brett Rosen and RB Capital Partners. Schmidt is not individually named as a defendant in that action. The company's OTC disclosures during the contract period — including the characterisation of the subcontract in quarterly and annual filings during and after its termination — are part of the public record. As of the FY2025 annual report, Cyberlux reports cash of $326,958, total liabilities of $64.1 million, and a $26.4 million receivable representing the interpleader corpus, against which $35.9 million in competing claims are filed.