Scientist spy case flushes out hiding place for cash

October 29, 2009

Oh the hiding places people find for cash.

As the Justice Department argued that former U.S. government scientist Stewart Nozette should remain in jail while he awaits trial on espionage charges, juicy new details emerged about the sting operation leading to his arrest for passing top secret information to an individual he thought was an Israeli intelligence officer but really was the FBI.

Nozette was arrested at the famous Mayflower Hotel in Washington on Oct. 19 but before FBI agents put the cuffs on him, the Justice Department said that he went to the bathroom in the suite and stashed $10,000 in the toilet’s upper tank. (The money was later recovered so don’t bother booking the room.)

The money was meant as a down payment on some $2 million Nozette demanded for handing over details about a classified program that the United States had spent $1 billion to develop and deploy, according to the Justice Department.

LEBANON-CRISIS/SEATSNozette allegedly also sought from the undercover FBI employee an Israeli passport with an alias and he opened a safe deposit box in California in which he stashed three computer drives, eight videotapes, 55 gold South African Krugerrand coins worth roughly $50,000, and $30,000 in savings bonds, the government said. (The Justice Department has said that Israel had no involvement in the attempted espionage.)

Earlier this year a jury convicted a former congressman, William Jefferson of Louisiana, in a corruption case that included $90,000 hidden in a freezer.

To bolster the government’s case to keep Nozette under lock and key until his trial, the Justice Department said its investigation “has revealed that Nozette is a person of means,” noting that he owns several residential properties across the country including a $2 million house in Chevy Chase, Maryland, and a $550,000 vacation home in Merritt Island, Florida.

“No treaty allows the United States to compel the extradition of an individual charged with espionage,” the government’s filing said.

Nozette has held a number of senior government positions and even helped with the development of a radar experiment that helped in the discovery of water ice on the south pole of the moon, the government said. He also worked at the Energy Department’s Lawrence Livermore National Laboratory and held special security clearance.

In January 2009, Nozette pleaded guilty to fraud and tax evasion charges, paying $265,000 in restitution.

Click here for more Reuters political coverage.

– Photo credit: Reuters/Jamal Saidi


We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see

Stewart Nozette “helped in the discovery of water ice on the south pole of the moon” — as opposed to petroleum ice, rapper Vanilla Ice, or any other kind of ice? Ice is frozen water, and vice-versa, so it’s redundant to specify “water ice”, and makes the writer appear ignorant.

Posted by Moe Badderman | Report as abusive

Speaking of appearing ignorant…ice is not just water in it’s crystalline form(though the most commonly considered form),there’s carbon dioxide ice,and ammonia ice,and the list goes on. You shot too soon,quick draw! LOL!

Posted by Bryan Klim | Report as abusive

[…] Front Row Washington » Blog Archive » Scientist spy case flushes … […]

Posted by Technology diffusion from the formal to the informal sector: The case of the auto-repair industry in Ghana (World Employment Programme research working paper) (Unknown Binding) | Car Repair Tool Guide | Report as abusive