Speculation about Milchan's involvement in arms dealing and intelligence activities was sparked after the indictment in 1985 of Dr.
Richard Kelly Smyth, an aerospace executive and scientist who had made illegal shipments of
Krytrons, which could be used as nuclear weapon triggers, through one of Milchan's companies. This remained largely in the category of rumor until biographers
Meir Doron and Joseph Gelman wrote a controversial
unauthorized biography of Milchan that was published in July 2011. The biography
Confidential, which is largely sympathetic to Milchan, revealed in detail how he involved himself in espionage, big-ticket arms-dealing, and obtaining sensitive technology and materials for
Israel's nuclear weapons program. The research in
Confidential – The Life Of Secret Agent Turned Hollywood Tycoon established that "at least through the mid-1980s [Milchan] was a full-fledged operative for Israel's top-secret intelligence agency,
Lekem. His activities included "buying components to build and maintain Israel's nuclear arsenal" and supervising "government-backed accounts and front companies that financed the special needs of the entirety of Israel's intelligence operations outside the country". Peres, the architect of Israel's secret nuclear weapons program in the 1960s, stated that in the 1960s he recruited Milchan to work for the Israeli
Bureau of Scientific Relations (LEKEM or LAKAM), a secret intelligence organization tasked with obtaining military technology and science espionage. Milchan acknowledged that he was a secret arms dealer for the Israeli government and claimed to have used his connections to promote the
apartheid regime in South Africa in exchange for it helping Israel to acquire
uranium for its
nuclear program. In June 2023, Milchan provided some details about the friendship he developed with future Israeli Prime Minister
Benjamin Netanyahu during his time as an intelligence officer, with the two having gone from being simple acquaintances to knowing each other "like brothers." == Controversy ==