Nuclear Engineer Accused of Selling Nuclear Warships Restricted Data

The Federal Bureau of Investigation (FBI) and the Naval Criminal Investigative Service (NCIS) arrested Jonathan and Diana Toebbe on October 9, 2021, for the sale of Restricted Data regarding nuclear-powered warships to an undercover FBI agent who they believed to be a representative of a foreign power.

As a nuclear engineer with active national security clearance at the Department of the Navy (DoN), Jonathan Toebbe was assigned to the Naval Nuclear Propulsion Program. Toebbe had access to military sensitive design elements, operating issues, and warships nuclear reactors performance data.

The Toebbe’s are charged with violating the Atomic Energy Act of 1954 which states “there shall be no exchange of Restricted Data with other nations… except to provide free interchange of ideas and criticism which is essential to scientific and industrial.” The Department of Justice’s (DOJ) complaint affidavit alleges. The couple allegedly sent a sample of Restricted Data and instructions to purchase additional files. Subsequently, Toebbe allegedly corresponded via encrypted emails with the undercover FBI agent acting as a foreign representative.

Following a “good faith” payment of $10,000 in cryptocurrency from the undercover agent, Jonathan and Diana Toebbe traveled to West Virginia to “dead drop” an SD card concealed within half a peanut butter sandwich. After the agent retrieved the SD card, Jonathan Toebbe sent a decryption key to receive a $20,000 cryptocurrency payment on June 26, 2021. The couple made another “dead drop” of an SD card, this time concealed in chewing gum, on August 28, 2021, in eastern Virginia. When the FBI received the decryption key, Toebbe received $70,000 in cryptocurrency.

Their arrest occurred after another “dead drop” in West Virginia. The Toebbe’s had their initial appearances in federal court on October 12, 2021, where they were separately charged with conspiracy to communicate restricted data and communication of restricted data. They face life in prison.

The Toebbe’s remain in custody until their detention hearings on October 15, 2021. The DOJ deemed both flight risks and seeks continued detention for both.