Israeli Company Indicted for Smuggling $10 Million Military Software Without License

The Israeli prosecution filed an indictment on Tuesday against Ability Computer Industries and Software Ltd. and two of its executives at the Magistrate's Court in Rishon Lezion, as part of a plea deal. The defendants are accused of aggravated smuggling and unlicensed defense marketing following a covert investigation led by the Lahav 433 unit, the Defense System Security Authority, and other enforcement agencies. The probe began after intelligence was received by the Ministry of Defense and police, revealing alleged violations of the Defense Export Control Law involving smuggled defense software valued at approximately 35 million shekels (around $10 million).

The indictment details that the defendants breached export control restrictions, with one executive also charged with tax offenses and the company accused of money laundering. The investigation involved multiple agencies, including the Diamond Unit, Foreign Trade Security Division, and Customs and VAT Investigations in Jerusalem. Central to the case is an attack software that lacked the necessary approvals from the Ministry of Defense or relevant arms trade oversight bodies for export to foreign countries.

Due to the sensitive nature of the case, significant details remain classified under a court-imposed publication ban, preventing full disclosure of the indictment's contents. Authorities emphasized the seriousness of the smuggling offenses and the breach of defense export regulations.