But cracking passwords is not a benign act, it is the felony. You ask what he did. Think about it.
Benign intentions are an assumption.
The person responsible for security at Intel is being paid to be paranoid and assume the worst. Once the factual felony is reported to law enforcement, law enforcement may be obliged to prosecute. If a company reports the action prematurely they may loose discretionary control. I think this is a gross exaggeration and misrepresentation.