The Lawrence Franklin espionage scandal (also known as the AIPAC espionage scandal) refers to Lawrence Franklin's scandal of passing classified documents regarding United States policy towards Iran to Israel through American Israel Public Affairs Committee (AIPAC). Franklin, a former United States Department of Defense employee, pleaded guilty to several espionage-related charges and was sentenced in January 2006 to nearly 13 years of prison, which was later reduced to ten months house arrest. Franklin passed information to AIPAC policy director Steven Rosen and AIPAC senior Iran analyst Keith Weissman, who later were fired by AIPAC. They were later indicted for illegally conspiring to gather and disclose classified national security information to Israel.
On June 11, prosecutors asked Judge Ellis to reduce Franklin's sentence to eight years for his cooperation. Judge Ellis said the dropping of the case against Rosen and Weissman was a "significant" factor in the sentencing of Franklin and sentenced him to ten months house arrest along with 100 hours of community service. Ellis said Franklin's community service should consist of "speaking to young people about the importance of public officials obeying the law".
On August 27, 2004, CBS News broke a story about a Federal Bureau of Investigation (FBI) investigation into a possible spy in the U.S. Department of Defense working for Israel. The story reported that the FBI had uncovered a spy working as a policy analyst under Under Secretary of Defense for Policy Douglas Feith and then-Deputy Secretary of Defense Paul Wolfowitz. He was later identified as Lawrence Franklin, who had previously served as an attaché at the U.S. embassy in Israel and was one of two mid-level Pentagon officials in the Office of the Secretary of Defense responsible for Iran policy in the office's Northern Gulf directorate.