U.S. Navy Engineer Sentenced for Trying to Sell Nuclear Warship Secrets to Foreign Country

The U.S. Justice Department said a Navy engineer and his wife have been sentenced to federal prison after they tried to sell military secrets, related to the design of U.S. nuclear warships, to a foreign government.

Jonathan Toebbe, 44, of Annapolis, was sentenced today to 232 months, over 19 years, of incarceration. His wife, Diana Toebbe, 46, was sentenced to 262 months, more than 21 years, of incarceration. The Toebbes pleaded guilty to the conspiracy in August 2022, the department said.

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. 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.

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.

Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. He began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted 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. Shortly afterwards, on June 26, Jonathan Toebbe serviced 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. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors.

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. After making a payment to Jonathan Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan Toebbe and his wife on Oct. 9, 2021 after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.