By Gregg Keizer , TechWeb Technology News
Israeli authorities on Sunday indicted a couple on charges of creating and distributing Trojan-based spyware that was sold to private investigators who in turn used it to filch secrets from client's competitors.
According to reports in the Israeli press, Ruth Haephrati, 29, has been charged in a 65-page indictment with aggravated fraud, unlawful computer access, virus insertion, installing tapping equipment, invasion of privacy, managing an unlawful database, and conspiracy to commit a crime. Husband, Michael Haephrati, 42, was charged with aiding and abetting her.
The pair have been in an Israeli jail since they were extradited from Great Britain in January.
However, it's not clear what penalties the Haephratis will face, since the Tel Aviv district attorney's office also announced Sunday that it had reached a plea agreement with the couple.
"There is a plea bargain arrangement with Ruth and Michael Haephrati, but the prosecution usually presents the agreement to the court, and this is what we will do in this case as well," Haim Wismonsky, senior deputy to the district attorney, told the Jersulam Post. The agreement will be revealed in court next week, he added.
That left an American security expert who has closely followed the case puzzled.
"You have to give credit to the Israeli police for uncovering this whole thing," said Richard Stiennon, formerly of anti-spyware vendor Webroot and now chief research analyst at his Michigan start-up IT-Harvest research firm. "But it looks like the court side of things may turn a blind eye to this crime."
Stiennon wondered if the Haephratis would get off with a veritable slap on the wrist for their part in the scheme. He wouldn't be surprised if they did.
"My sources in Israel told me a month ago that this would be whitewashed," he said.
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