The Israeli police have recommended that Prime Minister Ehud Olmert be indicted on charges of bribe-taking, fraud and breach of trust. Olmert is accused of accepting large sums of cash from a Long Island businessman, Morris Talansky, who is currently under investigation by the FBI. Israeli Attorney General Menachem Mazuz is expected to decide whether to prosecute Olmert within a few weeks. (New York Times)

Iraqi leaders expressed surprise and disappointment at the recent revelation in a new book by Bob Woodward that the United States government has been spying on Iraqi politicians. A spokesperson for the Iraqi government said that the report, if true, "reflects that there is no trust" between the two governments. Other Iraqi politicians suggested that the report could make ongoing negotiations about U.S. troop levels more difficult. White House press secretary Dana Perino had no comment on the allegations. (Washington Post)

Leading members of Congress are demanding more information about the FBI's seven year investigation into the anthrax killings, unconvinced by the FBI's declaration that army scientist Bruce E. Ivins was behind the attacks. In a letter to FBI director Robert Mueller, Democratic congressional leaders argued that there were many lingering questions for the FBI to continue to investigate. Ivins committed suicide while under investigation this July. (New York Times)

A former FBI agent will stand trial for murder and conspiracy for leaking information to the mafia that led to the shooting of a prominent gambling executive. John J. Connelly is already serving a 10 year prison sentence for his involvement with "Whitey" Bulger's Boston gang, which he protected from prosecution for years as an FBI investigator. The FBI's connections with the gang have inspired several books and films, including the 2006 film "The Departed", as well as new federal ethics rules on the use of FBI informants. (AP)

A Pennsylvania state senator spent $3.5 million of other people's money on his own lavish lifestyle and political machine, according to prosecutors. Vincent Fumo allegedly took over $2 million of his own state campaign funds, and stole from a neighborhood charity to purchase three vacation homes, a 33 room mansion, and to hire political operatives to spy on his ex-wife and political rivals. Fumo will stand trial on 139 counts of fraud and obstruction. (AP)

A New Jersey politican and welfare reform advocate is accused of creating no-work government jobs at taxpayer expense. Wayne R. Bryant allegedly held a job with Gloucester County Board of Social Services that paid him more than $200,000 and increased his pension from $28,000 to $81,000 but required him to work only 15 total hours. Bryant is similarly accused of working a job at the University of Medicine and Dentistry that required no responsibilities at all. (AP)