Israeli soldier seen inside a tunnel built underground by Hamas militants leading from the Gaza Strip into Southern Israel, seen on August 4, 2014 near the Israeli Gaza border, Israel. As Operation Protective Edge enters its 28th day, the Israeli mission of demolishing Hamas tunnels comes to a close and ground forces returned from Gaza, while Israeli airstrikes in Gaza and Hamas rocket fire to Israeli continues. Palestinian groups including envoys of Hamas and Islamic Jihad held their first formal meeting in Cairo hoping to secure a durable ceasefire with Israel. (Photo by Ilia Yefimovich/Getty Images)

JERUSALEM (JTA) — An Israeli citizen who made millions of dollars smuggling to a Hamas-affiliated merchant in Gaza has been convicted of crimes that “damaged the security of the state.”

Michael Peretz was acquitted, however, of the most serious charge — aiding an enemy during wartime.

The southern Israeli had declared bankruptcy while smuggling, Haaretz reported.

Among the illegal goods that Peretz transferred to Gaza were thousands of tons of concrete, pipes, metals and electronic equipment, The Times of Israel reported. Prosecutors said the pipes were used to produce rockets, and the concrete allowed Hamas to rebuild attack tunnels into Israel that were destroyed during the 2014.

Peretz also was convicted Sunday in the Beersheba District Court of conspiracy to commit a crime, contacting a foreign agent, aggravated fraud, money laundering and tax offenses.


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