U.S. Navy engineer, wife charged with selling submarine secrets

[October 11, 2021]  WASHINGTON (Reuters) - A U.S. Navy nuclear engineer and his wife have been charged with selling secret information about nuclear submarines to an undercover FBI agent who posed as an operative for a foreign country, the Justice Department said on Sunday.

Jonathan Toebbe and his wife, Diana, were arrested on Saturday in West Virginia and charged with violating the Atomic Energy Act, the Justice Department said in a statement. They are scheduled to appear in a West Virginia federal court on Tuesday.

Toebbe, 42, a Navy nuclear engineer with top secret security clearance, sent a package of restricted data to an unidentified country in 2020 and later began selling secrets for tens of thousands of dollars in cryptocurrency to an undercover FBI agent posing as a foreign official, the Justice Department said.

At one point, Toebbe hid a digital memory card containing documents about submarine nuclear reactors in half a peanut butter sandwich at a "dead drop" location in West Virginia, while his wife acted as lookout, the Justice Department said.

The memory card contained "militarily sensitive design elements, operating parameters and performance characteristics of Virginia-class submarine reactors," according to a federal court affidavit.

A folder with the seal of the U.S. Department of Justice sits on a table at the United Nations European headquarters in Geneva, Switzerland, May 11, 2015. REUTERS/Denis Balibouse

Another memory card was concealed in a chewing gum package, the Justice Department said.

Toebbe received separate cryptocurrency payments totalling $100,000, according to the Justice Department.

Officials said Toebbe and his wife, who are from Annapolis, Maryland, were arrested after placing yet another memory card at a drop site in West Virginia. They were charged with conspiracy and "communication of restricted data," according to a criminal complaint.

No attorney for the Toebbes was listed in either the court documents or the Justice Department statement.

(Reporting by David Morgan; Editing by Mary Milliken and Lisa Shumaker)

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