After Israeli spy Jonathan Pollard was sentenced to life in prison in 1986, the U.S. negotiated an understanding with Israel—a “gentlemen’s agreement” —stipulating that neither nation would thenceforth conduct espionage operations in the other’s territory without consent. But the agreement was a sham from the beginning. The Israeli government didn’t even honor its commitments in the aftermath of the Pollard case, failing to return the estimated 360 cubic feet of stolen information to enable the U.S. to conduct a damage assessment.
The United States, for its part, continued to recruit and run agents inside Israel throughout the 1980s and 1990s. And it was known within the intelligence and counterintelligence communities that Israel did the same in the United States. David Szady, the FBI’s assistant director for counterintelligence, was so dismayed by the level of Israeli spying in the late ’90s that he called in the head of the Israeli Embassy’s Central Institute for Intelligence and Special Activities (Mossad) office and told him, “Knock it off.”