In 1979, Walker approached his brother Arthur, a retired Naval lieutenant commander about joining his spy ring. Arthur was now worker for a private defense contractor and began smuggling documents to John.

Not content with just two resources, John focused his attention on his son Michael. After getting involved with petty crimes in Maine, Michael was sent to live with his father. John befriended his son, getting women for him and engaging in smoking marijuana with him. John urged his son to use moderation with drugs and with other vices and also hired him to work with him on weekends with his detective agency. He began guiding him towards seeking a position in the Navy and Michael enlisted upon graduation from high school.

After being assigned to a ship, Michael was surprised when his father approached him to join his spy ring. Michael accepted and after being stationed aboard the U.S.S. Nimitz, he was assigned to dispose of top secret messages by burning them in a furnace. Instead, he rifled through the large bags of documents, taking those of interest out and destroying the rest. He also uncovered the codes needed to open safes containing more top secret information, which he passed on as well.

In 1984, Barbara Walker discovered that John seemed to have an unlimited source of money but had refused to provide her with alimony payments. She threatened to expose his spy ring, not knowing that her son Michael was involved in it. He and Michael discussed informing her of Michael's involvement so as to head off possible exposure but both neglected to do so.On November 17, 1984, Barbara contacted the Boston office of the FBI, informing them that her former husband was a spy.

Barbara was initially considered a vindictive ex-wife but a report of the discussion landed on the desk of Norfolk-based FBI agents Joseph Wolfinger and Robert Hunter. After she passed a polygraph test and provided specific details about dead drops, she also told them that John had tried to recruit her daughter Laura. Hunter was dispatched to Buffalo, New York where he interview Laura. She corroborated Barbara's story leading the FBI to place a wiretap on John's telephone. Evidence gathered from this wiretap prompted agents to set into an action a plan to catch him in the act of passing classified documents.