Pants Full of Unix

Court remands top Israeli execs in industrial espionage affair

The Tel Aviv Magistrate's Court Monday remanded several people from some of Israel's leading commercial companies and private investigators suspected of commissioning and carrying out industrial espionage against their competitors, which was carried out by planting Trojan horse software in their competitors' computers.
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Also on Monday, the Tel Aviv fraud squad discovered Trojan horse software in computers belonging to AMC, a company that produces transmitters for planes and unmanned aerial vehicles. The inspection found that only financial material was extracted from the computers, although the company specializes in security.

Other companies suspected of espionage include the satellite television company Yes, which is suspected of spying on cable television company HOT; cell-phone companies Pelephone and Cellcom, suspected of spying on their mutual rival Partner; and Mayer, which imports Volvos and Hondas to Israel and is suspected of spying on Champion Motors, importer of Audis and Volkswagens. Spy programs were also located in the computers of major companies such as Strauss-Elite, Shekem Electric and the business daily Globes.
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Police investigators eventually determined that the program had been written by Michael Haephrati, 41, a former in-law of Varda Raziel-Jacont. Haephrati, an Israeli citizen, currently lives in Germany and England and has no previous police record.

Investigators then found that Haephrati had sold his program to three private investigation agencies: Modi'in Ezrahi, Zvika Krochmal and Pilosof-Balali. All three agencies are licensed by the Israel Justice Ministry and enjoy excellent reputations.