Israel to charge drone maker executives with fraud

MarketsAssociated Press

Israeli prosecutors say they plan to charge executives of an Israeli drone company with fraud and export violations concerning its dealings with a "significant client."

A Justice Ministry statement said Wednesday that after an almost yearlong investigation the State Attorney's office summoned top Aeronautics Ltd. officials, including its chief executive, for a hearing pending indictment.

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Most details of the case remain under gag order.

The company said in a statement that there was no basis for criminal proceedings.

Last year, the Defense Ministry suspended some of Aeronautics Ltd.'s export licenses to a client abroad. Israeli media identified the client as Azerbaijan.

Reports at the time said the move came following a complaint that an explosives-laden suicide drone landed near a military post in neighboring Armenia during a demonstration.