CARL CAMERON, FOX NEWS CORRESPONDENT: Since September 11, more than 60 Israelis have been arrested or detained, either under the new patriot anti-terrorism law, or for immigration violations. A handful of active Israeli military were among those detained, according to investigators, who say some of the detainees also failed polygraph questions when asked about alleged surveillance activities against and in the United States.
There is no indication that the Israelis were involved in the 9-11 attacks, but investigators suspect that they Israelis may have gathered intelligence about the attacks in advance, and not shared it. A highly placed investigator said there are "tie-ins." But when asked for details, he flatly refused to describe them, saying, "evidence linking these Israelis to 9-11 is classified. I cannot tell you about evidence that has been gathered. It's classified information."
Fox News has learned that one group of Israelis, spotted in North Carolina recently, is suspected of keeping an apartment in California to spy on a group of Arabs who the United States is also investigating for links to terrorism. Numerous classified documents obtained by Fox News indicate that even prior to September 11, as many as 140 other Israelis had been detained or arrested in a secretive and sprawling investigation into suspected espionage by Israelis in the United States.
Investigators from numerous government agencies are part of a working group that's been compiling evidence since the mid '90s. These documents detail hundreds of incidents in cities and towns across the country that investigators say, "may well be an organized intelligence gathering activity."
The first part of the investigation focuses on Israelis who say they are art students from the University of Jerusalem and Bazala Academy. They repeatedly made contact with U.S. government personnel, the report says, by saying they wanted to sell cheap art or handiwork.
Documents say they, "targeted and penetrated military bases." The DEA, FBI and dozens of government facilities, and even secret offices and unlisted private homes of law enforcement and intelligence personnel. The majority of those questioned, "stated they served in military intelligence, electronic surveillance intercept and or explosive ordinance units."
Another part of the investigation has resulted in the detention and arrests of dozens of Israelis at American mall kiosks, where they've been selling toys called Puzzle Car and Zoom Copter. Investigators suspect a front.
Shortly after The New York Times and Washington Post reported the Israeli detentions last months, the carts began vanishing. Zoom Copter's Web page says, "We are aware of the situation caused by thousands of mall carts being closed at the last minute. This in no way reflects the quality of the toy or its salability. The problem lies in the operators' business policies."
Why would Israelis spy in and on the U.S.? A general accounting office investigation referred to Israel as country A and said, "According to a U.S. intelligence agency, the government of country A conducts the most aggressive espionage operations against the U.S. of any U.S. ally."
A defense intelligence report said Israel has a voracious appetite for information and said, "the Israelis are motivated by strong survival instincts which dictate every possible facet of their political and economical policies. It aggressively collects military and industrial technology and the U.S. is a high priority target."
The document concludes: "Israel possesses the resources and technical capability to achieve its collection objectives."
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