No Criminality in Israeli Case, U.S. Aide Says

U.S. Attorney Anton Valukas’ office has found no evidence of criminality following allegations that Israeli military officers tried to steal plans for an aerial spy camera system from a defense firm, the Chicago Sun-Times reported Wednesday.

“At this point, we have found no criminality on the part of anybody or anything like the Israeli government,” said Valukas, who assigned an assistant U.S. attorney to the case in early July.

Valukas described his office’s review of the allegations as an evaluation and not an investigation, the Sun-Times said.

Accusation in Lawsuit

Recon Optical Inc. of suburban Barrington charged in a lawsuit filed in New York that the Israelis tried to steal plans for a reconnaissance system the firm was developing for Israel under a $40-million contract financed by the Defense Department. The contract was part of the foreign military sales program.

“There was a giant conspiracy by the government of Israel and the air force to transfer this data to Israel with what we presume is the stated goal and objective of setting up an Israeli company,” Recon President Larry Larson said Tuesday.

The system would allow supersonic jets flying within Israel to take detailed pictures of military installations and other targets more than 100 miles outside its borders and transmit them to a ground station within seconds.

In Tel Aviv on Wednesday, the Israeli Defense Ministry denied Recon’s charges, saying any information about the camera system was obtained legally and that the allegations stem from a commercial dispute with the U.S. defense contractor.

The statement said the company had contracted to supply airborne camera equipment at an agreed-upon price but later sought more money from the Israeli government, in breach of contract.

In Washington, intelligence sources said a report published Tuesday in the Chicago Tribune on the alleged theft attempt “is factually correct.”