The Department of Justice has been cracking down on Chinese communist espionage within the Department of Defense, and related defense industries, according to a recent slew of indictments and plea bargains.
This week, a former Army helicopter pilot turned defense contractor named Shapour Moinian was sentenced to 20 months in prison for furnishing classified defense information to Chinese officials on a thumb drive.
The first transfer of classified information to Chinese intelligence took place in 2017 when, "Moinian traveled to Hong Kong where he met with this purported recruiter and agreed to provide information and materials related to multiple types of aircraft designed and/or manufactured in the United States in exchange for money," a DOJ press release announced.
"Moinian accepted approximately $7,000-$10,000 in U.S. currency during that meeting. According to his plea agreement, at this meeting and at all subsequent meetings, Moinian knew that these individuals were employed or directed by the PRC."
According to DOJ, he continued to provide classified information to the Chinese for the next several years and was paid $22,000 for his services.
Jonathan and Diane Toebbe were also sentenced to 19 and 21 years, respectively, for their part in conducting attempting to conduct acts of espionage using their position at the Naval Nuclear Propulsion Program to steal classified submarine secrets.
"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," the DOJ announced. "Jonathan Toebbe 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."
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In subsequent months, Toebbe began servicing a dead drop location, leaving behind an SD card loaded with classified information secreted inside a peanut butter sandwich for someone he thought was a foreign intelligence agent. After the undercover FBI agent paid Toebbe $70,000 in cryptocurrency he serviced other dead drop locations, leaving behind more classified data until the husband and wife team were arrested in 2021.
Also this week, a new federal indictment dropped charging defense contractors with illegally selling rare earth magnets to the Department of Defense.
Phil Pascoe, Monica Pascoe, Scott Tubbs with Quadrant Magnetics were, "charged with wire fraud, violations of the Arms Export Control Act, and smuggling of goods for their roles in an illegal scheme to send export-controlled defense-related technical data to China and to unlawfully supply U.S. Department of Defense (DOD) with Chinese-origin rare earth magnets for aviation systems and military items," DOJ announced.
The indictment alleges that the contractors conspired to sell export controlled data related to, "end-use items for aviation, submarine, radar, tank, mortars, missiles, infrared and thermal imaging targeting systems, and fire control systems for DOD" to the Chinese in addition to attempting to sell magnets for use in fighter jets which were manufactured in China in violation of the Defense Acquisition Regulations System.
The defendants are presumed innocent until proven guilty in a court of law, but if convicted each face up to 20 years in prison.
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