This is such a convoluted story. I think I have it straight now.
An Israeli author, Amnon Jackont, noticed that some of his unpublished works were circulating on the Internet and called the police because he suspected his ex-step-son-in-law, Michael Haephrati was responsible. The police found spyware on Jackont’s PC that uploaded files, email, and keystroke logs to a server in London. That server (maybe others) contained files from a lot of Israeli companies that indicated they were infected with spyware as well. Police checked out computers in those companies and eventually started arresting private investigators accused of installing spyware within target organizations. That led to the arrests and questioning of executives at the firms that had hired the “Private Investigators