Spy Leaks: Couple Uses Crypto, Sells Nuke-Sub Secrets to FBI Sting Agent, Package Intercept Program

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Plea Deal Rejected For Couple Accused Of Selling Nuclear Submarine Secrets

https://www.theepochtimes.com/plea-deal-rejected-for-couple-accused-of-selling-nuclear-submarine-secrets_4669840.html
https://www.washingtonpost.com/national-security/2022/08/16/navy-spying-plea-deal-rejected/

A federal judge on Aug. 16 rejected a plea deal for a U.S. Navy
nuclear engineer and his wife who are accused of attempting to sell
U.S. submarine secrets to a foreign government.

Jonathan, 42, and Diana Toebbe, 45, from Annapolis, Maryland were
arrested by the FBI and the Naval Criminal Investigative Service
(NCIS) in October 2021 during a string operation and charged with one
count of “conspiracy to communicate restricted data” and two counts of
the “communication of restricted data.”

Prosecutors alleged that the couple had sold “restricted data” for
nearly a year to an individual they believed was a representative of a
foreign government. The data concerned the design of nuclear-powered
warships.

However, the individual they were attempting to sell the information
to was actually an undercover FBI agent.

The couple pleaded guilty in February in federal court in Martinsburg,
West Virginia, to one count each of conspiracy to communicate
restricted data as part of plea deals that saw two counts of
communication of restricted data dropped.

Under the plea agreement, Diana Toebbe would serve no more than three
years in federal prison while Jonathan Toebbe would spend between
roughly 12 years and 17 years behind bars.

However, on Tuesday, U.S. District Court Judge Gina Groh of the
Northern District of West Virginia rejected those plea deals, stating
that they were “not in the best interest” of the country.

The judge said the couples’ actions were done “for selfish and greedy
reasons” but could have caused great harm to the Navy and others.

“Counsel, it’s not in the best interest of this community or, in fact,
this country to accept these plea agreements,” Groh said. “Therefore,
I’m rejecting them. I don’t find any justifiable reasons for accepting
either one of these plea agreements.”

As a result of Groh’s decision, the Toebbe’s separately withdrew their
guilty pleas and Groh set a new trial date for Jan. 17.

Unrestricted Access to Nuclear Data

Jonathan Toebbe, a nuclear Navy engineer who was assigned to the Naval
Nuclear Propulsion Program, also known as Naval Reactors, held an
active national security clearance through the U.S. Department of
Defense, meaning he was able to access restricted data regarding
reactors for nuclear-powered warships.

According to prosecutors, the FBI became involved in the couple’s
scheme after an agent obtained a package intended for a foreign entity
that contained a sample of restricted data along with instructions on
how to establish a way to purchase further restricted data.

Prosecutors said the package contained U.S. Navy documents, a letter
with instructions, and an SD card containing specific instructions on
how the recipient should communicate with the Toebbes via an encrypted
communication platform.

“I apologize for this poor translation into your language. Please
forward this letter to your military intelligence agency,” the letter
with instructions stated, according to prosecutors. “I believe this
information will be of great value to your nation,” it added.

During the sting operation, email correspondence between the couple and
the undercover FBI agent continued for several months before the Toebbes
struck a deal with the agent to sell the restricted data for thousands
of dollars in cryptocurrency.

Prosecutors said the couple would conceal an SD card containing restricted
data relating to submarine nuclear reactors within a peanut butter
sandwich or a chewing gum package and leave it at an arranged drop-off
location for undercover agents.

Jonathan Toebbe's lawyer, Nicholas J. Compton, told the judge on Tuesday
that the 12 to 17 years range behind bars was "not a slap on the wrist"
and was a  significant punishment," The Washington Post reported.

Diana Toebbe’s attorney, Barry P. Beck, said a shorter term was needed
for his client because "her husband had an ill-conceived idea to make
money, and she agreed to go along with it."

Ultimately though, judge Groh disagreed. The couple are expected to reach
new plea agreements with the government before the next trial date.