Yes, Fox did broadcast the series.
A 7 May 2002 Salon article explains what happened:
Just about the same time that KHOU was stabbing in the dark, reporter Carl Cameron of the Fox News Channel was beginning an investigation into the mystery of the art students that would ultimately light the way into altogether different terrain. In a four-part series on Foxs “Special Report With Brit Hume” that aired in mid-December, Cameron reported that federal agents were investigating the “art student” phenomenon as a possible arm of Israeli espionage operations tracking al-Qaida operatives in the United States. Yes, you read that right: a spy ring that may have been trailing al-Qaida members in the weeks and months before Sept. 11 — a spy ring that according to Camerons sources may have known about the preparations for the Sept. 11 attacks but failed to share this knowledge with U.S. intelligence. One investigator told Cameron that “evidence linking these Israelis to 9/11 is classified. I cannot tell you about evidence that has been gathered. It’s classified information.”
According to Cameron, some 60 Israeli nationals had been detained in the anti-terrorism/immigrant sweeps in the weeks after Sept. 11, and at least 140 Israelis identified as “art students” had been detained or arrested in the prior months. Most of the 60 detained after Sept. 11 had been deported, Cameron said. “Some of the detainees,” reported Cameron, “failed polygraph questions when asked about alleged surveillance activities against and in the United States.” Some of them were on active military duty. (Military service is compulsory for all young Israelis.) Cameron was careful to note that there was “no indication that the Israelis were involved in the 9/11 attacks” and that while his reporting had dug up “explosive information,” none of it was necessarily conclusive. Cameron was simply airing the wide-ranging speculations in an ongoing investigation.
Incendiary as it was, that story died on the vine, too, and the scuttlebutt in major newsrooms was that Camerons sources — all anonymous — were promulgating a fantasy. Reporters at the New York Times and the Washington Post hit up their go-to people inside Justice and FBI and CIA, but no one could seem to confirm the story, and indeed numerous officials laughed it off. Fox got it wrong, the newspapers of record concluded. And nothing more was heard on the topic in mainstream quarters.
But inside the DEA, the Fox piece reverberated. An internal DEA communiqué obtained by Salon indicates that the DEA made careful note of Camerons reports; the communiqué even mentions Fox News by name. Dated Dec. 18, four days after the final installment in the Fox series, the document warns of security breaches in DEA telecommunications by unauthorized “foreign nationals” — and cites an Israeli-owned firm with which the DEA contracted for wiretap equipment — breaches that could have accounted for the access that the “art students” apparently had to the home addresses of agents.
The same article reports it was taken down early by Fox, but Fox denied it was out of the ordinary: (emphasis mine)
Oddly, four days after the Cameron investigation ran, all traces of his report — transcripts, Web links, headlines — disappeared from the Foxnews.com archives. (Normally, Fox leaves a story up for two to three weeks before consigning it to the pay archive.) When Le Monde contacted Fox in March for a copy of the original tapes, Fox News spokesmen said the request posed a problem but would not elaborate. (Fox News now says Le Monde never called.) Asked why the Cameron piece disappeared, spokesman Robert Zimmerman said it was “up there on our Web site for about two or three weeks and then it was taken down because we had to replace it with more breaking news. As you know, in a Web site you’ve got x amount of bandwidth — you know, x amount of stuff you can put stuff up on [sic]. So it was replaced. Normal course of business, my friend.” (In fact, a text-based story on a Web site takes up a negligible amount of bandwidth.)
See also the 07 March 2002 Telegraph article US arrests 200 young Israelis in spying investigation
There is also a June 2002 discussion on Snopes about Fox not having the video on its website.
