Category Archives: Ability Inc.

Employees from Israeli spyware vendor Ability arrested in probe of ‘significant’ issues

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Israeli authorities have arrested multiple employees of the spyware vendor Ability in connection with an investigation into allegations of fraud, smuggling and money laundering at the company, the firm’s chief financial officer said Monday in a U.S. regulatory filing. Avi Levin, CFO of Ability Inc., confirmed to the U.S. Securities and Exchange Commission Monday that employees from subsidiaries Ability Security Systems Ltd. and Ability Computer & Software Industries Ltd. were taken into custody on suspicion of breaking the law on a “significant scale” as part of their business activities. The SEC update followed prior reports from Israeli media outlets indicating the Israeli Defense Ministry has been investigating the firm for allegedly violating international law which regulates Israeli security export controls. Tel Aviv-based Ability was co-founded by CEO Anatoly Hurgin and CTO Alexander Aurovsky. It is best known for marketing hacking tools, like ULIN, which stands for “Ultimate Interception,” to international governments. […]

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After litany of lies, Israeli hacking firm Ability settles lawsuit for $3 million

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Plagued by investor lawsuits and federal investigations over allegedly lying about products and finances, Israeli hacking company Ability Inc. recently settled out of court by paying $3 million to investors who say Ability’s executives have been misleading about their company’s finances from the start. Most of the allegations in the class action lawsuit are also violations of federal law, so it’s little surprise that Ability came under federal investigation last year for allegedly lying about products and finances. When asked about the current status of the investigation, the SEC declined to comment. Investigations of this nature tend to take years to complete. The settlement is a significant hit for a company with fast evaporating cash reserves and revenue — and little explanation as to why things have gone so badly. With just $3.6 million in cash left on their balance sheet, according to SEC filings, the clock is ticking. The company spent $8.4 million […]

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Israeli hacking firm Ability under SEC investigation, adding to its woes

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At a glance, the private hacking and surveillance industry is rich and getting richer. Yet that industry boom doesn’t mean every company is raking in millions. Amid the high demand for surveillance tech, there is a multimillion-dollar Israeli firm whose future is very much in doubt. Ability Inc. is staring at a mountain of business and legal challenges. The 23-year-old company is currently under investigation by the Securities and Exchange Commission for allegedly lying about products and finances. It’s also facing an investor lawsuit for many of the same allegations, was nearly delisted from NASDAQ and has watched nearly a dozen board members resign in the last year. At the heart of the lawsuits are allegations that Ability lied for years about the company’s ability to develop, sell and deploy its flagship product. The tool, which is spyware designed to eavesdrop on any mobile phone, was not developed by Ability nor does the company […]

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