Israeli security outfit Allot is in trouble after it was caught selling software to Iran.
According to Business Week, Allot Communications shares fell to the lowest level this month after it was reported by Bloomberg that the company’s gear was sold to Iran.
Allot’s gear for monitoring Internet traffic was flogged to Iran via a distributor in Denmark. Israel forbids any trade with Iran because it fails to recognise the State and its defence force does not want to be on the receiving end of military technology it created.
A member of Israel’s parliament Nachman Shai called for an investigation, and the Ministry of Defense said it’s examining the report.
Allot Chief Executive Officer Rami Hadar said that the agreement with the distributor, RanTek A/S, was that the company could only market its products in Denmark. There were no Allot employees that were aware that RanTek was selling outside of Denmark.
Allot claims that it obeys Israeli and non-Israeli laws, including all applicable export laws and regulations and is “investigating the claims contained in the Bloomberg article.”
But three former sales employees for Allot told Bloomberg News it was well known inside the company that the equipment was headed to Iran. There is a bigger fear that if the US finds that Allot has been flogging the software to Iran it might ban shipments to the lucrative US market.
The gear shipped to Iran is called NetEnforcer. It looks at pieces of data moving over a network. It can be used to eliminate spam or help network operators prioritize or block certain types of traffic.
It cannot really be used to spy on anyone and lacks any capability to analyse or extract knowledge on the actual content of internet traffic.