Ha! Of course Israel conducts espionage against the United States (and of course, the United States conducts espionage against Israel). Jonathan Pollard, anyone?
Countries spy on each other, even on their allies. It's just a fact of life.
Israel admitted to Pollard later on. And you’ll note that Israel didn’t say, “We have not ...” but rather we do not, which is present tense. I would believe Israel in what they say, but I would not believe Obama and his administration!