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Navy Engineer, Wife Sentenced For Trying To Sell American Submarine Secrets For Crypto: Feds

The wife of a former Navy engineer who worked with her husband and attempted to sell American secrets to a foreign country to an undercover operative got a longer sentence than her husband, federal officials announced on Wednesday, Nov. 9.

Diana and Jonathan Toebbe

Diana and Jonathan Toebbe

Photo Credit: West Virginia Regional Jail and Correctional Facility Authority
Diana and Jonathan Toebbe

Diana and Jonathan Toebbe

Photo Credit: Instagram- Diana Toebbe

Diana Toebbe, 46, of Annapolis, and husband Jonathan Toebbe, 44, serviced three “dead-drops," which were picked up by undercover FBI agents during a year-long sting operation, federal prosecutors said, leading to lengthy prison terms for both.

On Wednesday, Jonathan Toebbe received a sentence of 232 months - more than 19 years - in prison, while his wife received a term of 262 months, totaling more than 21 years after both pleaded guilty to the conspiracy to communicate Restricted Data related to the design of nuclear-powered warships in August.

“If not for the remarkable efforts of FBI agents, the sensitive data stolen by Mr. Toebbe could have ended up in the hands of an adversary of the United States and put the safety of our military and our nation at risk,” US Attorney William J. Ihlenfeld II for the Northern District of West Virginia said.

“The FBI keeps American citizens safe from enemies both foreign and domestic and this case is an excellent reminder of their important work.”

According to court documents, at the time of his arrest, Jonathan Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors.

He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act, prosecutors said.

“Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors,” they added.

Jonathan Toebbe worked with and had access to information concerning naval nuclear propulsion, including information related to military-sensitive design elements, operating parameters, and performance characteristics of the reactors for nuclear-powered warships.

He admitted to sending a package to a foreign government, listing a return address in Pennsylvania containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional state secrets.

Jonathan Toebbe began corresponding through encrypted email with an individual whom he believed to be a representative of the foreign government, who was in fact an undercover FBI agent investigating him.

The correspondence lasted several months, culminating in an agreement to sell the data in exchange for thousands of dollars in cryptocurrency.

On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment, and days later, he arranged a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location.

After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment.

In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card, which contained Restricted Data tied to submarine nuclear reactors, officials said.

On Aug. 28, 2021, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package in exchange for $70,000 in cryptocurrency.

The FBI arrested Jonathan Toebbe and his wife on Oct. 9, 2021, after he placed a third SD card at a pre-arranged “dead drop” at a second location in West Virginia.

“These actions are a betrayal of trust, not only to the US Government, but also to the American people,” Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division said. “All US Government employees swear to support and defend the Constitution of the United States, and with that oath comes the obligation to protect sensitive information.

“Those entrusted with such grave responsibility must be held accountable if they violate their oath and betray their country.”

Special Agent in Charge Brice Miller of the Naval Criminal Investigative Service (NCIS) Office of Special Projects added that “the Toebbes betrayed the American people and put our national security at significant risk when they selfishly attempted to sell highly sensitive information related to nuclear-powered warships for their own financial benefits.” 

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